So You Want To Buy a Foreclosure: Tip Number 1

Posted at 8:05 AM, Sep. 23, 2009

Most every buyer that I have sat across the table from is convinced the best deal they are going to get is a foreclosure.  Don't be so sure. 

First, this is not a segment of the housing market for the faint hearted.  You have to be quick to act on a property, and frankly, too many buyers are still dragging their feet. 

Secondly, don't assume they are a great deal.  Yes, many are priced well,and, many are not, especially for the amount of work needed. 

A number of foreclosures have been scrapped.  What that means is, the kitchen is missing, the bathrooms are missing, plumbing pipes are missing, you get the idea.  So, for the average buyer using a lender,  this is a no go.  Why?  The properties do not have the very basics to be considered habitable so lenders won't put down their money on the hopes you will make the necessary repairs.  Now mind you, there are construction loans out there but at a higher interest rate and in need of great credit scores. 

Stay tuned for more foreclosure tips to come.