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buying a foreclosed home vs regular sale

is there any major differences in buying a foreclosure home vs an owner just selling their home? I see so many super cheap houses that are foreclosed in the area i want to live but i feel like there has to be a catch. this will be my first home so im not sure what to expect. I plan to get an FHA loan if it matters.
  • May 11 2014 - US
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Answers (1)

They are probably now bank owned homes since the foreclosure is over. The biggest difference is often the condition. Since the previous owner of a new bank owned home lost the home to the bank the previous owner often will do no maintenance or repairs or updating at all. The foreclosure process can take years and so the home often needs a lot of hugs and kisses. Sometimes the previous owner could not sell because there was a serious maintenance issue so they just let the bank take it back and now the new owner will have to deal with it and sometimes your lender will not loan on the house because it is missing things like heating systems, stove, frig or things like that. There can also be foundation issues or anything else that might prevent a new lender from giving you a loan. Or it could just be a good deal where the bank is taking a loss to move it.

My suggestions is to always look at all homes in your price range and compare. And get a good inspection. Bank owned homes don't give you much time to inspect, maybe 5-7 days, so you must act FAST when they agree to a price.
  • May 11 2014
  • 1Yes

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