1. Undisclosed damage - A home that is foreclosed on can tend to be a little messed up with some cosmetic damage. That isn’t a matter. The huge problem is when you start working on small upgrades and then you see more substantial troubles. Structural or electrical troubles are what you need to look for.
If you hire an expert property inspector, you’ll offset your risk when buying any distressed property. They will likely see things wrong with the property that you aren’t experienced enough to uncover. With a price close to $400, you’ll not regret applying for a comprehensive report of all the things that should be addressed.
2. Financing difficulties - When there are needed improvements to make a home habitable, lenders would prefer not to lend on them. They require the homes to be in livable condition prior to the property getting financed. The true danger here is to spend your dollars on examinations and valuations and then losing your cash because the contract falls through.
Address these concerns ahead of time with your mortgage officer. If you do, and you are well-informed, you should be prepared for the challenges that can arise. Some solutions could be to apply for a rehabilitation loan like 203k or Fannie Mae’s Homepath program. It’s unlikely that the seller (usually a bank) will agree to do any upgrades, so plan on doing them yourself.
3. Sold as is - This is the way of letting you know the owner is not responsible for any conditions that may arise with the house. You should do your research and uncover the concerns for yourself. The owner is usually a financial institution and they probably don’t fully understand what the troubles are, because they never resided there.
So if you are ready for this, you will be alright. Performing a thorough residence inspection is more than likely the best way to be prepared for any possible issues. Do not attempt to save a few hundred dollars by passing up this step. It’s brought up twice because it is very important.
All of that said; there is still great opportunity in purchasing a Grants Pass foreclosed house. Knowing what you are getting into is critical and can make all the difference on a great contract and a colossal mistake. Being aware of problems beforehand can also permit you to work out an even better transaction with the owner.
When looking for foreclosures in Grants Pass, make sure you give consideration to other homes as well. You can explore all of the available properties on the MLS for all homes for sale in Grants Pass absolutely free. When you’re ready, speak to a real estate professional to let you inside the residence, and in case you want to buy it, help you write an offer.