These houses have challenges but manageable ones. You can use mortgages like the farmers bank Idaho to get them. Here you will get the fundamental problems you will experience with these houses.
You need to know that the owners sell these properties because they can’t manage the mortgage. They have defaulted for a long, and the only option was to move. The house is poorly maintained in most cases because the owner can’t afford the payments. They at times fail to pay for the regular house upkeep. Some owners direct their stress to the house before banks repossess them. They vandalize the house removing fixtures and appliances.
Maintenance is a problem in many foreclosed houses. It’s due to the circumstances that the previous owner moved. It’s also because of the duration the house has been empty.
Some of these concerns are as follows:
- Poor cleanliness
Bank-owned houses are often dirty. It’s because they stay empty for long or the previous owners neglected them. A locked house has poor air circulation that makes it easy for dirt to build up that makes a house smell.
- Poor renovations
The previous owner may have made renovations without getting proper permits. An example is converting a garage into a living room to accommodate more people in the house. Such changes create problems with the authorities or the new owners.
- No electricity
Since no one lived there for a long time, electricity could be off unless the bank kept it on. Without light, a new owner may have problems in the initial days they occupy the house.
- Damaged water systems
A small leak in a house is a time bomb that can destroy property and even cost a life. With nobody to take care of the leaks, the house can crack, causing a disaster in the home.
- Overgrown or dead grounds
Depending on the location, the landscaping and the lawn may overgrow or die. Banks don’t pay gardeners to maintain a foreclosed home.
Problems in buying the house
A foreclosed house can still be a good venture despite the above problems. You can buy the house at a discounted amount and fix the mess yourself.
There are still some problems that one can still face in the buying process.
- Delays with owner’s bank
Banks need to unload REOs immediately when one vacates, but some will not comply. They drag themselves into the entire escrow process while considering offers.
Because foreclosed houses are great deals, many investors target them. They aim at converting them into rentals or flip properties. Since investors have money, they will make great offers. Banks will consider at the expense of owner-occupants.
The above problems aren’t a must. Foreclosed houses are great if you target them, but you should get prepared to handle the process. Be wise enough ahead of the investors who also target them. Agree to buy the house at a discounted rate and do the repairs on your own if they aren’t much. You will save a lot!