When buyers purchase a foreclosure home, they should not be surprised if the house is damaged or in a state of disrepair. Remember you can not get into the home before you buy it, unless you stop by the house and the former homeowners are still living there, in which case you would need to ask them for their permission to walk through the home that they just had foreclosed on. This is usually not a recommended idea as some homeowners have very bitter feelings about losing their homes.
In addition, to move properties more quickly, says F.F. Chappy” Adams, president of Illustrated Properties, in Palm Beach Gardens, Fla., lenders are often making significant repairs, replacing major items or offering repair assistance.” That alone may make the home, once repaired, a good investment down the road.
Typically, these areas were hastily built by developers eager to take advantage of the seemingly endless appreciation of real estate, and they all came crashing down when the purchasers (and in some cases, the developers) became unable to meet their mortgages or construction loan payments.
The more you learn about the home, the more realistic your purchase offer can be. If you can spiff up the home with a coat of paint and some landscaping and reasonably offer it at market rates, your post-purchase expenses will be small (and you can afford a higher bid).
Bank-owned foreclosure: If no one buys the house at auction, ownership reverts to the mortgage lender and the lender resells it. This is when most buyers figuring out how to buy a foreclosed home for the first time are in the best position to buy it because the process is more like a traditional home buying experience—though it does still have its quirks.