Are Foreclosures always a good option?

People are mostly encountered by this question. After learning the pros and cons it sometimes gets difficult whether a foreclosure is the best option to turn into a land owner or not? The cons of foreclosure homes can be pretty drastic if not measured out earlier. However the temptation to be a home owner still pushes you into the deal.

Do get the best out of foreclosure is to search for foreclosure homes in the areas you live or know well. This way you may be able to answer most of the crucial questions yourself. I know a couple who rented in Miami for a couple of months. They had certain amount of savings and intended to buy a home for themselves. Upon investigating they learnt about the benefits of foreclosure homes and decided to give it a try. Their planning included finding a home in Miami because they wanted to settle there for good. They began heir process by renting a home first. They lived on rent till they found their required home in foreclosure. They made necessary investigation, but because they had been living in that area since some time, they were aware of most of the consequences. The right bid finally made them the proud owner of their dream home in Miami.

This little inspirational story was to motivate you towards foreclosure homes, but in a positive way. Let me share some interesting facts that you might not have not about buying foreclosure homes.

Homes are foreclosed because their previous owners may either not have paid the installments or have not paid taxes for more than 3 years. The ac department then puts the foreclosed house for auction. However, there usually is a teeny tiny legal clause, which can give the property back to the original owner if he pays all the taxes within two years of awarded auction. In such a situation, you only get back the bid price you had paid while purchasing and any repairs you make in the meanwhile will not be compensated to you. This is why deeds are given to the auction winners after two years.

A much interesting scenario in lieu with this legal clause is that you win a house at an auction which probably needs new flooring. You installed a new flooring just to know after two years that you installed the flooring for someone else’s house. This situation may seem funny now but can turn depressing if it occurs in reality.

In such cases, a better option will be to selection foreclosure options which gives you the facility o inspect the house to you full content. You can thoroughly investigate and make a list of all repairs required. You then need to determine that can you spend 2 years without making any of the maintenances? How worse can the condition or the need for maintenance grow within two years? Place a bid if the situation is acceptable even after 2 years, when the house is fully and legally your personal property.

Closed biddings are often appreciated by bidders. In closed biddings they are required to place a written bid that is sealed in an envelope at the FHA board. All the bids are kept as they are till the day of the auction sale. When the big day arrives, the bids are opened in front of the audience and the best bid wins the auction.

The house you buy via a foreclosure auction may have loads of work in it. The couple I mentioned above spent an approximate of 5k on the maintenance of their house. Cosmetic repairs are huge in foreclosed homes. The couple had termed the house livable when they placed the bid. However they were really surprised when small flaws started to stand out once they shifted n. One of the water pipes burst due to winter freeze. However the house was still not a bad deal for them, because as per the market value and demand, even after spending 5k over the bid prices, they could have got a profit of 30k if they sold the house. This is a very good example of a wise buy!

You may find great home by just roaming about the street. Did you know that there are a large number of foreclosed homes that just never gets advertised? A light stroll every may encounter you with some of the best homes are foreclosure. These homes usually have a small notice on white paper posted indicating that they are foreclosed. Make sure your mate on the passenger side scans the streets every now and then. You never know when you may find the house of your dreams.