When you are considering buying a home looking at foreclosed homes may seem like a good idea. You can get a good property at a good price but it may not be possible to build a relationship with the previous owner. After all, you are buying his property that he did not want to sell but was forced to by the court system. Although it would be nice to know any little quirks about the house from the owner the benefits of buying a foreclosed home will often outweigh this minor little inconvenience. One important thing to know is that buying a foreclosure is not as simple or easy as buying a regular home. You will need to take special care when buying a foreclosure.
When purchasing a regular home that was on the market to be sold one of the first things that most prospective buyers get to do is take a tour of the house. When buying a foreclosed house this may not be an option. You may be given detailed information regarding the home’s amenities, detailed information in regards to the home’s floor plan, the address, and square footage, but the first time you may be in the home is after taking possession.
You may walk into a well taken care of home or it may be run-down inside with carpet that has to be replaced, walls need to be painted, plumbing not working all the time, and a multitude of other problems. The owner may be bitter about having lost his property to foreclosure so they decide to wreck the inside of the house before being forced to move out. In some cases the price of the home is so inexpensive that what the condition of the inside of the home is not that much concern to the potential buyer.
When purchasing foreclosed homes the buyer needs to be aware that this means that the home comes “as is.” The home may need major repairs before or after it is sold. The owner can decide to do the major repairs or not. Considering the circumstances as to why the home is being sold there is little chance that the owner will feel any obligation in helping the buyer with this problem.
In some jurisdictions, there is the right of reclamation, which means even after the home is sold the previous owner could agree to purchase the house for the same price it was sold for at foreclosure during a certain period of time. If the previous owner decides to exercise that right there is nothing that the new owner can do about it. Although this a rare occurrence it can cause substantial conflicts so buyers of foreclosed homes should be aware of this possibility.