SOURCE: hgtv.com
The rise in interest rates led to an increase in foreclosures for many homeowners.
As interest rates climbed, many people found themselves unable to keep up with their mortgage payments, resulting in foreclosures and financial struggles.
For some home buyers and inventors, purchasing a foreclosed home can mean getting a bargain. Let’s take a closer look on the advantages of buying a home in foreclosure.
- Bargaining power: If the seller isn’t underwater on the mortgage, he or she may be motivated to achieve a fast sale and more likely to do repairs and provide price concessions during this period. If it is a short sale, the purchase price will be less than the seller owes on the mortgage. The seller and the lender may be actively trying to avoid a foreclosure and thus motivated to make a concession on the price.
- Condition and title knowledge: The seller must give a complete history of the property’s condition. The buyer can do normal title searches and obtain desired inspections within the standard due diligence contingency period.
- Financing flexibility: The buyer can use regular mortgage financing and the seller may even be willing to work out alternative mortgage financing in the form of a lease-purchase agreement or mortgage assumption.
While it may seem daunting, buying a foreclosed home can be the best financial decision you’ll ever make đź’°. Are you considering buying a foreclosed home? Let’s chat!