Buying a house that is in foreclosure is often touted as a way for both owner-occupants and investors to get a great deal on a property. However, the potential financial rewards are not arrived at without a significant amount of hard work.
Foreclosed properties have some common problems. In addition, there are some standard difficulties you may encounter in purchasing one. While foreclosures can be great investments as fixer-uppers, either to live in or resell, they often come with baggage.
- However, the potential financial rewards of buying a foreclosed property are not arrived at without a significant amount of hard work.
- Many homes in foreclosure have been poorly maintained and may have structural issues, or water or mold damage; some may be in violation of codes or other standards.
- Vandalism can also be an issue, with thieves or the prior owners sometimes taking fixtures, appliances, windows, or anything