The F Word: Foreclosures and What They Mean for You
Whether you’ve just started your house hunting or have been going at it for awhile, you may have been hearing the word foreclosure and wondering why people seem to be scrambling to get themselves one. The truth is that there are a lot of great foreclosures in the Discovery Bay area just waiting to be snagged; but if you’re unsure about what that means for someone like you, browsing the Discovery Bay foreclosures may be a confusing and frustrating task. So here’s what you need to know about foreclosures and what separates them from the rest of the houses on your dream house list.
Foreclosed homes are homes that the owners were unable or failed to pay for. There are a lot of different reasons that home can be foreclosed upon, but what it really all adds up to is that it may be a good opportunity for you. Foreclosed homes (or real-estate-owned property) aren’t for sale by those who were living in the house but instead by the bank that repossessed them or the government that seized them. The banks and government usually sell these properties for a relatively low price because as they stand empty, they’re not able to make any money off of them.
But there are a few details that separate foreclosed homes from your normal listings. Sometimes they can be found in desperate need of fixing up because of their previous tenants or the time they’ve sat empty. Unlike normal houses which are spruced up to get them to sell faster and for more money, foreclosed homes are generally sold as-is so you aren’t going to see a model home when you go to check one out. If the owners that were living there before knew they were going to be foreclosed, they may not have taken very good care of the property because they knew they wouldn’t be the ones selling it.
You should also be warned that because the bank or the government owns the property, the buying process is generally lengthier than those of a normal home. Especially during the housing crisis, the banks were stacked full of paperwork from foreclosed homes and it takes a lot of time and scrutiny to get through all of it. If you’re hoping to find something to get moved into in a hurry, a foreclosed home may not be the way to go.
And be sure you’re allowing for additional expenses when you get into your house. Most foreclosed properties are sold as-is which means you’ll be responsible for fixing anything that isn’t up to code in the house. Hire a home inspector to take a look at the place before you get in too deep so you know what kind of expenses you’ll be looking at to make your new home livable. It may not be worth your while.
Talking to your real estate agent should help you make the decision of whether a foreclosed home is for you or not. But while searching through Discovery Bay foreclosures, keep an open mind. You never know what hidden treasures may await you.