Every one is talking about how there are so many foreclosure homes currently available on the market, and how you can get a great deal on price by buying a foreclosure. However, is buying a foreclosure really a good deal? Sometimes they are not such a good deal. Have you ever gone to see a foreclosure homes? They look like a bomb went off inside. Some of the prior homeowners were so unhappy with their lenders that they trashed their houses before leaving, stripping them of anything of value. Usually the landscaping is just as bad with little if any maintenance ever done on the property.
Because the properties are left like this, the lenders often sell them “AS IS” condition. This releases them from being held responsible to potential problems with the home.
You may not get the deal you thought you were getting because lenders are trying to recoup a loss when they sell these foreclosed property.
Sometimes you often overpay for a foreclosed property. Because it might take months to do this type of purchase, someone else can come in and outbid you. If you have become emotionally attached to property, you may offer more money.
You may do much better when purchasing from a more motivated seller, someone who might need to relocate due to a job or a divorce and needs to sell quickly. They will be more willing to take a small loss or a discount to you.