The Atlanta real estate market growth trend, according to realtors, is expected to continue. But this means many people are boxed out of the market. It's just got so expensive. So, foreclosed homes are an option. This can be a great opportunity to buy a house for less than it's worth or it can be a money-draining nightmare.
Here are a few, quick things to know about a foreclosed home.
They come 'as is' which means if you saved, say, 25 percent on the purchase price, extensive repairs may eat up that difference. And if that house has been vacant for a while, watch out for mold and expect that rodents have moved in. Also, the last homeowners were most likely strapped for cash, so they probably didn't do needed repairs.
So let's say you're still in. Do get a realtor who has had experience buying foreclosed homes. You'll need her expertise and hand holding.
Get it inspected. While it's sold 'as is' you need to know what you're getting into now not later.
Do a title search. You need to know what other financial burdens are attached to this house because you'll be responsible them. We're talking about back taxes, liens, outstanding construction loans or home equity lines of credit. All of these could make a good deal go sour really fast.
PREPARE TO LOSE IT
Buying a foreclosed home is not like buying a regular house where you and the seller enter a contract and if folks back out there is a financial penalty.
In the case of a foreclosure, the lender, ultimately selling the house, really wants top dollar. You, on the other hand, want a deal. Know that your contract can be canceled for any reason if a better offer is made before you close.