subject: Buying Foreclosure Houses: Avoiding Common Problems [print this page] Families and individuals who are planning to buy foreclosure houses should be more than careful in closing the transaction. The low prices of foreclosure homes might be enough to lure an unsuspecting buyer, but there are things they need to consider first before signing the purchase contract.Advantages of foreclosed propertiesForeclosures are definitely good options when it comes to buying a home. They are offered at very low prices and buyers can pay just about half of the amount that they would have paid if they opted for an existing property.Foreclosed and distressed properties are offered at such low prices because most banks are eager to remove these properties from their books and lighten their load. It is also not difficult to find numerous choices when it comes to foreclosed properties.What buyers should be wary ofAlthough they can really benefit home buyers, foreclosed property buying can bring in a different set of troubles to those who are not careful. There are other groups involved the negotiation, not just the seller, and buyers should make sure that they are all doing only the things that they should be doing.In purchasing foreclosure houses, buyers should make sure that the contract being offered is legitimate. In short, a buyer must be absolutely sure that the property is really foreclosed. There are instances when properties are being offered to buyers despite the fact that the current owner still legally holds the right to the property.Also, attention should be paid to charges that are sometimes inserted "between the lines." Some property agents or third party companies will not tell purchasers about extra costs, such as unpaid taxes, maintenance fees, etc.; and they will just find out about them once the contract has been sealed and the extra costs start coming in. To put it more simply, read and understand ever single detail of the contract.Foreclosure houses are great options when it comes to buying a home. Buyers can save a lot of money by purchasing foreclosed properties instead of existing homes. However, utmost care should be exercised to make sure that every aspect of the transaction is as it should be.
