Risks of Purchasing a Foreclosed Property

The main risk of purchasing a foreclosure property, is that it is purchased on an “as is, where is” basis. Sometimes fixtures such as lights, faucets and cabinets may have been removed from the property or are damaged. The property is often left unclean with unwanted trash and items left behind.

An additional risk to consider when purchasing a foreclosed property is the former owner or occupants may not vacate the property in accordance with the court order and/or could pay up and maintain ownership and possession of the home. This could lead to a delay in taking possession of the property or in a complete termination of the deal.

Bearing all of this in mind, don’t shy away from considering foreclosed or “power of sale” properties, because at the end of the day you can be purchasing a property you love at a discounted price. It is rare that an owner occupier will hinder the sale process since it is not in their best interest to do so. Understanding the process and potential risks of purchasing a foreclosed property will allow you to navigate purchase with greater knowledge and confidence. Call Tom today to find out how to do that!