Hold it right there; why exactly are you even considering the possibility of buying a foreclosed property at this moment in time? You have to be either very batty or very rich to be doing so, and considering the fact that you’ve stumbled upon this blog. I’d say that the former is a very strong possibility. Hear me out on this one before you go ahead and buy that foreclosed property.
Two friends of mine (Let’s call them Marty and Doc) were thrilled last month when they won a house in a foreclosure auction not even a few weeks ago. They had, in their own words “struck a bargain”. I raised my eyebrows at them quizzically then as I do even now. But then Marty and Doc had been living in Santa Monica and they were hoping (not entirely against hope) that the burst of the housing bubble would allow them to buy themselves a nice little home in Palm Springs and it did. And they got it at the bargain sticker price of “only” $137,000. What a steal!
And then, once the honeymoon period was over. They came to realize that they didn’t own the home in full, or even at all if you were to ask me. What they had bought in effect was a second mortgage from Wachovia and the house was a white Elephant. There was a giant unpaid primary loan on the home and that too had to be cleared. So, no home really and not much of a chance in hell of getting that check back from the auction house. Well, okay, they did have the home but they were only a few missed payments away from losing it. And they came to realize that.
Doc and Marty’s tale should be enough to put any of you off really. And given how a number of discrepancies have come to light with the way banks have pushed foreclosures. Through
Yes, it’s a tasty, tempting little proposition for first-time homeowners or anyone looking to buy a second home. What with prices and interest rates cheap but there are just so many pitfalls. It is insane to consider buying a foreclosed home. When the entire process is so geared against the homeowners. Especially when the powers that be refuse to stand up against these greedy banks. Have no scruples and sense of procedure.