Foreclosure Real Estate: What Unsuspecting Buyers Should Know

Homebuyers might be attracted to the idea of purchasing foreclosure real estate because of the perceived low costs

. However, the actual cost of the house itself is not the only financial obligation that a buyer will have to take on. There are usually some complications attached to the property, particularly if the buyer was unable to inspect it before making the purchase.

The Problem of Eviction

If a buyer won the property at an auction, chances are, he was unable to inspect it prior to the purchase. There are instances when a house being sold is still occupied by the former owners or by their relatives. Or even people who have nothing to do with the property, like squatters and renters.

If such is the case, the buyer will be responsible for evicting these occupants. There are a lot of legal requirements when it comes to eviction. Buyers might think that since they have purchased the property, they can just tell anyone living in it to leave. The reality is this is not the case.

To make sure that the eviction in a foreclosure real estate is being done legally, buyers should hire lawyers to take care of it. That's one additional cost lawyer's fees. Furthermore, people residing in the property are sometimes legally able to sue the one evicting them. This means more expenses to fight the lawsuit.

Inspection Is Not a Guarantee

A buyer might have had the time to inspect the house prior to making a purchase, but several weeks or even months can still run before the deal is closed. During the initial inspection, the buyer can find the property in good condition, hence the decision to buy.

However, during the time that the deal is being finished, the former owners or some neighborhood vandals might gain entry into the property and rob the house. It is not surprising for former owners who were disgruntled by the foreclosure to go back and cause as much damage as they can.

Take note that most lenders or property sellers do not bother with securing a foreclosure real estate once the purchase deal is underway. For them, once the buyer has confirmed the desire to purchase, the security of the property is their responsibility and not the seller's anymore.

by: Joseph B. Smith

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