The Advantages and Disadvantages of Buying Foreclosure Homes
Foreclosures are something that has spread all over the country although New Jersey holds the top spot for states with the most foreclosures. The fact that New Jersey ranks top is not a surprise as it is a figure that has been growing over the years. Due to the high number of foreclosures, it is not hard to spot vacant properties with residents raising complaints about it becoming an eyesore. The issue has become so serious that area governor is now creating a number of bills that are aimed at reducing the time that a property will actually sit vacant, and give homeowners more say in keeping their homes in the first place. At least one in every one thousand and six homes has been put up for sale, is in preforeclosure or has become the property of the bank according to statistics. This is alarming, but the good thing is the number of foreclosures has seen a drop in the current year. Although there is a lot of attention accorded to the homeowner going through foreclosure or has just been through it, the vacant home is an excellent opportunity for anyone looking to buy a home for a great deal. However, some pros and cons surround the purchase of foreclosure homes, and you can read more about them here.
When buying a home in foreclosure, the title is not something to worry about. As soon as you are buying the house, you also gain lawful ownership of its title. If you are unlucky, you may purchase a title only to discover later that there are some back taxes and mortgages tied to it. In some cases, details about the owners are not even known, making it hard to clear this up. Apart from taking back a home, the bank will also claim the title of a home in foreclosure.
Buying a home in foreclosure can be scary due to the ‘as is condition. The ‘as is’ condition presents buyers with a great deal since they get exactly what you see. It is up to the new owner to make all the necessary repairs and renovations. The problem with this is that the new owner may not be aware of the problems unless they are knowledgeable and have fixed up a number of homes before. You may be deceived into thinking that a surface only needs a small repair or renovation but it could turn out to be a big problem that needs a bigger project to solve. In the process of taking care of the problem, you may end up losing a lot of time and money. It is wise to have a home inspector to e a look at a home before you purchase it if you are buying it in ‘as is’ condition.