Foreclosure Information

Buying a Foreclosed Property

If you are a buyer in today's Southern California real estate market, then the question of buying a foreclosed property has entered into your mind. This is normal, but before you decide on making the commitment to buy a foreclosed property, read the information below to see if you are ready to handle the issues that tend to be associated with buying a foreclosed home, condo or investment property.

Real Estate Foreclosures: Are they a good deal?

As with any purchase of real estate, there are good deals and there are bad deals. The key is in researching the community, the property and the seller. With foreclosed properties, these issues are even more important. The phrase Caveat Emptor is especially important to consider when buying a foreclosed property. Some questions which you need to think about before considering any offer on a foreclosed home, condo or investment property are listed below:

Why did the seller go into foreclosure?
Are you dealing with the owner or the lender?
Was the property an investment property or primary residence?
Can the seller cure the default before the purchase in finalized?

Once you have decided that a foreclosure is the best way for you to buy your home or investment property, you should then consider the following issues before putting an offer on any property:

Whether or not you are buying the property from an auction or directly from the lender, these properties are sold "as-is". Make sure that you have the property inspected. This is even more important when the home, condo or property was used as a rental property. Many of these foreclosed properties have not been maintained properly and will require a significant amount of work to make them livable again. Properties are purchased without inspections but this is normally done by individuals purchasing multiple properties and have experience in purchasing foreclosed properties. If an issue comes up, they can spread the cost across multiple properties. For the individual just purchasing one property, we would highly recommend NOT trying to purchase a property where you can't inspect the property.

If the property is an investment property and being used as a rental property, make sure you review the rental agreement to see what the former owner committed to providing in the rental contract.

Be aware also that if the owner is living in the property which you are buying, you may have to go through a lengthy eviction process and that the current people living in the property may damage the property in the process of being evicted or moving out and chances are you will not be able to receive any compensation for the damage they cause.

These are just a few of the issues associated with buying foreclosed properties, homes and condominiums. If you have further questions about the process, what is available for sale in Carlsbad or the surrounding towns and cities of North County Coastal, please call or EMAIL us and we will be happy to assist you in your efforts. Just be prepared. Buying foreclosed properties is usually not a pretty process but if done right, can be a great investment.