What should I know about buying a foreclosed home?

(Originally published Oct. 2010)

Virtually every potential buyer that contacts my office asks about our Savannah area foreclosure listings.
We've all the heard or read the stories about buyers who bought a $120,000 home from a desparate bank for $70,000. Or buyers who found a distressed seller who sold her house at a fraction of what it was worth.

Unfortunately, most of these callers are very excited about buying a foreclosure, but have no idea what they are getting into. There are advantages and disadvantages to buying a foreclosed home. Here are some general tips anyone can follow if they want to purchase a home in forclosure or in a short sale:

See the house in person. Don't rely on a low price and internet pictures.

Conduct a title search. Find out whether it has a second mortgage or a lien on it.

Get an up-to-date inspection. Conditions change and older inspections probably no longer apply.

Budget for repairs and renovations. Chances are the longer the house has been vacant, the more problems there may be.

Study the neighborhood. Is the house in a crime area or surrounded by other foreclosures?

Get expert help. Work with a real estate agent who is experienced in foreclosures.

If you have additional questions, or need capable and trustworthy representation, please call me at 912-352-1222.