Quote:
Originally Posted by LakeCleElum
Were a lot of foreclosures around here 5 years ago........Had a few friends thinking they would get rich overnight. In reality,hundreds of others had the same idea; driving the price up to full retail.....Most of those homes had been seriously neglected.....
One example: A friend of mine passed and his wife had to let the house go back to the bank. House sat the winter with no heat. Frozen pipes broke.......Needed new flooring and sheet rock......Then the mold set in......None of this was disclosed.........
Proceed with extreme caution.......
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Bought a house like this. Fully knowing it needed remediation. It wasn't a cheap house either, but it was the only way we could afford what we wanted in our market at that time.
We got to inspect it before we closed.
Just be warned - it's extremely expensive to do it right.
Like $20k and up expensive for a full basement. Then all the systems need replacing - a/c heat et al. They are all in there too and water flows down...
Someone already said you need cash in hand. Top tip - even though you don't have to - is to pay for title insurance to protect yourself at closing. It makes taking a mortgage out when it's deemed habitable much easier. They force you to pay twice if you do this (which is aggravating) but its worth it in the end. The one thing about title insurance is that you are 99% sure it's free of encumbrances. If it isn't they won't issue.
The other thing to note is if you have a buyers realtor they hate these sales. They either get nothing or a low percentage. Expect them to try to steer you to a property their group represents.