Foreclosure Myths Part 2
Posted by Lee Cameron on Thursday, November 11th, 2010 at 11:02am.
Part 2: Myths For Those Looking to Buy a Foreclosure Property
1. Foreclosure Properties Are Only in Bad Areas
Not true - especially right now. The recession hit everyone, on every economic level, and financial hardships can occur for anyone at anytime. You can find foreclosure properties in low income areas and high income areas across the board. Case in point, look at the amount of short sales and foreclosure properties in The Waverly, one of downtown Orlando's luxury condo high-rises.
2. Foreclosure Properties Are in Disrepair
Certainly, there are cases where this is true. When a homeowner can't afford their mortgage, they likely can't afford upkeep as well. But that doesn't mean the home is falling apart, it may simply mean minor repairs. Or none at all. There are many foreclosure homes in perfect shape. Like with any home, just make sure to get a good home inspection and find potential problems before you buy.
3. Foreclosures Occur Because the Previous Owners Were Financially Irresponsible
Some foreclosures occur because of that, yes. And some occur because of a sudden job loss, an illness coupled with high medical bills, an unexpected death in the family or any other inescapable life emergency. There are many, many reasons a foreclosure could have happened.
4. Buying a Foreclosure Takes Advantage of Distressed Homeowners
Sometimes it's easy to feel like an Ebeneezer Scrooge character, snatching up a property from a previous owner who can no longer afford it. The reality, however, is that purchasing a foreclosure property helps the previous owner (even if they don't see it that way). Whatever you pay for the home, you're essentially paying off that much of their debt to the bank. If the home didn't sell, the original owner would continue to owe the bank and risk facing bankruptcy if they couldn't repay their debt.
5. Foreclosure Properties Go for Rock Bottom Prices
Thanks to newspaper articles and radio ads, this is probably the most prevalent foreclosure myth of all. The idea that a foreclosure property can go for half the price of a similar property currently on the market is crazy. It's true, you'll likely find some good deals in the foreclosure market, but you're not likely to stumble on the outrageously low-priced finds that you hear about on the news. The banks still want to make their money back on these homes so they're going to sell them at a fair market price.
Part 1: Myths For Those Facing Foreclosure
Central Florida Foreclosure Properties
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