Jessica (Kinsella) Hoff's Q&A

Not stupid at all- it is much less risky than if you are referring to purchasing properties at auction. As a former foreclosure specialist who worked the purchase of tons of foreclosures in the early 00s, I can tell you the risks are huge. You have to assume the absolute worst about a foreclosed property- the nightmare stories I have are endless and I always found that if a person is looking for a home, as opposed to an investment, the savings on the foreclosure do not outweigh the risk. This is where you and maybe your family are going to live. If you cannot go inside the property before the actual sale (the norm in NJ with properties up for auction) you have no idea the layout, how the space fits you and, as one client told me "how will i know if my chi fits here?" (I was confused about this 10 years ago but now I understand!). Seriously though, using a licensed Realtor or real estate agent can help you enormously. If you are purchasing a foreclosure at an actual sale, be aware that you are responsible for any back taxes or liens against the property and they can be costly ( I have seen federal liens for back taxes in amounts over 200K on modest homes). I always tell my clients that if you are interested in foreclosures, perhaps work with the agent to purchase a short sale property at steep discounts if you have the patience- great prices, little risk- especially important for your next new home! Good Luck!