As mortgage foreclosures sweep the nation, real estate speculators are going to start crawling out of the woodwork looking to buy homes for “pennies on the dollar”.
It will convince many who’ve never done real estate to buy a course and enter the market for themselves.
But there are problems.
Not all foreclosures are the same.
Here’s the case of a foreclosure being for OTHER than financial hardship reasons.
And it’s something to keep in mind.
Adding language to a real estate contract to protect yourself against environmental liability as an investor may be called for.
This foreclosure had a mold problem. Other “bargain” homes may have a meth lab problem that’s only discovered later. The previous homeowner disclosed the problem, but where was the bank or real estate agent’s disclosure?
By definition, investing in foreclosures means looking to buy homes that are “too good to be true”.
But one “bad deal” like this one - especially if you resell the home - could wipe you out.
Image courtesy ABC News
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