The Upside and The Downside of Purchasing Foreclosures Homes
Foreclosures are something that is happening across the country, but New Jersey ranks top when it comes to the rankings of states with the most foreclosures. The fact that New Jersey ranks top is not a surprise as it is a figure that has been growing over the years. You can easily spot a vacant foreclosure anywhere in the state of New Jersey with residents complaining that it has turned into more an eyesore. There are new bills that are being put up by the governor to regulate the amount of time a property can actually remain vacant as well as give the owners of property more control when it comes to keeping their homes. At least one in every one thousand and six homes has been put up for sale, is in preforeclosure or has become the property of the bank according to statistics. Although it is a cause for worry, the number of foreclosures has seen a significant reduction this year. While there is plenty of attention surrounding a homeowner who is facing foreclosure or has just been through it, someone looking to buy a home at a lucrative deal is presented with an opportunity in the form of the vacant house. However, some pros and cons surround the purchase of foreclosure homes, and you can read more about them here.
When buying a home in foreclosure, the title is not something to worry about. The legal purchase of the home gives you the rights to its title. In some cases, some buyers will end up buying a title tied to a mortgage or back taxes. While some buyers may think that this is always cleared up when buying, it is always a different case since some titles don’t have a record of previous ownership. Foreclosure means that a bank takes ownership of a home and retains its title.
The ‘as is’ condition associated with buying a foreclosed home can be costly. As a buyer, you are presented with a great deal thanks to the ‘as is’ condition which means what you see is what you get. If there are any repairs and renovations needed, it is up to the buyer to take care of them. The problem is, such no problems may only be evident to a homeowner who is knowledgeable about this and has fixed up several houses in the past. What you may think is a minor surface repair or renovation may turn out to be a bigger problem and a massive project. In the end, you may find yourself losing a lot of money and time in the process. Any home being bought in as is a home inspector should check condition before the deal is completed.