Should You Buy a Home in Foreclosure?

By Vicki Schamel

Has been a dedicated Realtor for over 30 years. She first entered real estate to balance work and raising her two young daughters, but it soon grew into a lifelong passion.

We’re currently seeing more foreclosure properties coming on the market, but what are the advantages and disadvantages of buying a home in foreclosure? 

The main positive of a foreclosure home is the price, and the main negative is the condition, but today I also want to talk about pre-foreclosure. Pre-foreclosure is when a homeowner has missed multiple mortgage payments. The bank will usually send three notifications before starting legal action.

What is the advantage of getting the home on the market for a seller in pre-foreclosure? It can save your credit score and you’ll be able to take advantage of the equity you have in the home. The advantages of buying a pre-foreclosure home are that you can often get a better price and you can also get conventional financing that you wouldn’t be able to get on a foreclosed property.

If the home has not been taken care of, those issues should be evaluated by a specialist. As a buyer, make sure you can afford any required repairs. As a seller, I recommend connecting with a Realtor that can help with your home’s value and with negotiations so you can get your home on the market and not hurt your credit.

If you have any information you’d like to know about how the pre-foreclosure process works, reach out to me by text, email, or phone. I’d be happy to talk through it.