Many prospective buyers consider foreclosure properties in the hopes of catching a great deal on a house. While it is true that foreclosures offer an opportunity for a cheaper home, there are many issues that come with buying a foreclosed home, especially depending on which stage of foreclosure the home is in. If you’re looking into a foreclosure, keep the following in mind:

The property may not be in great condition

Foreclosures rarely come as a surprise to the homeowner. They’ve already been behind on payments and the foreclosure process can take a long time, even longer than a year. Residents that know they’ll be losing a home are unlikely to care for it well leading up to their eviction. Angry about the foreclosure, they may even express this by destroying the property, and then the new owner may have to pay for it or deal with lowered quality.

You can also buy during pre-foreclosure or auction, but proceed with caution

There are other options for buying a home in foreclosure or pre-foreclosure, the latter meaning that the previous residents still own the house but foreclosure is on the horizon. They may be damaging their credit and struggling to make payments, meaning the seller could be highly motivated to make the sale before falling behind more deadlines. Buyers may feel pressured to complete the buying process in a short amount of time, so they should make sure that the house is for them.

Another option is to buy at a foreclosure auction, but be careful and proceed with caution, especially if you are new to this type of buying. The advantage is, you’ll be getting a great deal. However, this type of buying is risky. Many homes bought at an auction must be fully paid within a day or must be paid in cash. If you have the funding already, next you’ll have to worry about the risks you’ll be taking. Auction sales are quick and you will have little time to take a good look at the home’s condition or information provided in inspections, if any time at all. You may think you’ve got a great bargain only to find heavy structural or mold damage that turns out to be quite expensive. And after the auction, the new owner is in charge of evicting the current residents, who could be damaging the home further as long as they remain.

Your best bet is to buy the home after the bank has become the owner, or Real Estate Owned. This is after an unsuccessful closure auction, when the lender must take charge of selling the home. Not only will you not be responsible for evicting the previous owners, but you will have more time for a proper inspection and consideration. The bank is also general responsible for certain expenses, back taxes, and repairs.

If you are looking for foreclosures or other Denver real estate for sale, make sure you’ve done your research and feel comfortable with your purchase.

About PorchLight Real Estate: PorchLight Real Estate Group has the most experienced and knowledgeable Denver real estate agents in Colorado. For more information about homes for sale in Denver CO or specific neighborhood homes please visit www.porchlightgroup.com.

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