Looking for Your Dream Home
Are you in the market for a new home? Perhaps you have a certain budget that you want to stick to. Or, if you’re a flipper, then you may be looking for an ideal home that you can make some money on. This might lead you to foreclosed homes. Are they worth it? For some, they just might be. For others, it may be safer to buy a typical home. Here are a few things to look for when you’re thinking about buying a foreclosed home.
1. Auction or Not to Auction
One opportunity that you might receive when buying a foreclosed
home is being part of an auction. At the auction, interested parties bid on the
home. The one who offers the most by the time everyone passes on the
opportunity gets the house. Auctions can be a great way to get a home at a
However, they also come with the stipulation that you are unable to inspect the home beforehand. Any savings that the auction earned you may end up being used to fix the place up instead. You may even find that the home is a total tear-down in the first place.
2. Liens Payments
Some auction homes also require you to pay any unpaid taxes to the IRS. Called liens, these outstanding payments on taxes are up to you to pay. You can typically work with the IRS to set up a payment plan. You also won’t know about the tax situation until after you buy the house.
3. Going Through a Bank
A much safer option, if you want to buy a foreclosed home, is to go through one that is owned by the bank. In this instance, the bank is required to pay any liens that the IRS has out for it. So, you don’t have to worry about paying for taxes that weren’t yours, to begin with.
Banks also tend to offer the home under market prices because they’re eager to get rid of it. It’s possible that you might save a lot of money by going through a bank.
The unfortunate side is that it can sometimes take a long time for a foreclosed home to close. That doesn’t make it a viable option for people who need to move quickly. Yet, depending on the bank, you may be able to push things along if your credit is good or if you intend to pay in cash.
The most important thing about a home is that you love it. Foreclosures can be a great deal if you don’t mind a little risk and potentially putting in some work. Utilize a realtor in Yardley today.