Should You Buy a Foreclosed Home?
You’ve been searching for houses and you’ve finally found the perfect one. It’s the size you need, it’s in a great location, and it’s even within your budget. The only catch is that it’s a foreclosure. Should you buy a foreclosed home, or are you better off moving on to other properties?
Purchasing a foreclosed home offers many benefits, one of the biggest being that foreclosed properties are often relatively cheap to buy. This is because mortgage lenders (banks) usually don’t want to hold onto foreclosed homes for very long after repossessing them, and thus may be more motivated to sell than a typical homeowner would.
With that said, there are also some things to keep in mind if you’re considering buying a foreclosed home:
- It may have liens on it. A property goes into foreclosure when the owner gets behind on paying the mortgage, and in many cases, they also neglect to pay property taxes and utility bills. When that happens, liens can be placed on the property that must be cleared before the home can be sold.
- You could be responsible for extra costs. Closing costs are typically divided between the buyer and the seller. But when a foreclosed home is being sold, the buyer is often responsible for paying more of the closing costs than they normally would.
- It may need renovations. Because foreclosed homes are usually sold as is, you may need to spend significant amounts of time and money on renovations before you can move in. And if you’re unable to handle the repairs yourself, the cost of hiring contractors could eat into the amount you saved by purchasing a foreclosed home in the first place.
Get the Legal Help You Need With Your Home Purchase
If you’re planning to purchase a house in Florida, you’ve probably done some research into the applicable laws and learned that the state doesn’t require attorneys to oversee real estate sales. Nonetheless, it’s still a smart idea to hire an attorney to assist with your home purchase, especially if you’re considering buying a foreclosed property. Having a real estate attorney on your side offers many benefits—not only can they perform the same services as title companies (e.g., issuing title insurance, holding escrow, and preparing the documents needed for title commitment), but they can also:
- Represent clients in negotiations
- Provide legal advice
- Draft additional documents, including contract amendments, bills of sale for personal property, and occupancy agreements
Fortunately, if you’re in the Tampa Bay area, you won’t have any trouble finding a qualified real estate attorney to represent you in your home purchase. Simply turn to The Lyons Law Group, P.A., a trusted real estate law firm that’s been serving clients since 2008. We offer a wide array of real estate closing services for both buyers and sellers, and we also have extensive experience with foreclosure law.
Contact The Lyons Law Group, P.A., today to schedule a free initial consultation at either of our locations—we have offices in New Port Richey, FL, and Spring Hill, FL, making us a convenient choice for clients in Pasco County, Hernando County, and nearby areas. We’ll be happy to arrange a visit at a date and time that’s convenient for you.
