FORECLOSURES

(this info is not from foreclosure.com...but that is a good website to look at homes)

There are numerous risks/rewards of purchasing a foreclosure property in today's market. Everyone has heard through the media the growing number of properties available that are foreclosures. This is mostly because of all the consumers that purchased properties on an ARM mortgage (adjustable rate) and they saw a jump in their payment and they no longer were able to afford their home.

I have shown buyers many foreclosures lately and a few of them have even placed offers. Once you submit your offer to the bank (the homes are nearly always vacant and some even trashed), you must be willing to wait 2 days to 2 months for a response from the bank. That is just for the response. I just had a buy wait a few days and the bank flat out rejected their offer. No counter offer, no negotiating. Just back to square one.

Risks on foreclosure homes:

You usually can't make an offer contingent on an inspection. You are allowed to get your own inspection, you just can't ask for any repairs.

Usually the water is shut off and the home has been sitting vacant for months.

You have to buy the property AS IS. Banks could case less if they have to fix anything, they just want the home out of their inventory.

You may have to make offers on multiple homes before you actually get one. Just because you make an offer on one home, that could mean there are 3-4 other offers on that home sitting on the banker's desk.

Rewards:

I really think there is only one reward when you get right down to it:

You can buy a home for less then market value, if you are willing to wait.