Buying a foreclosure (FCL) is often encouraged as a way for both occupants and investors to get a great deal on a property. However, the potential rewards of buying a foreclosure don’t come without their share of hard work and headaches. We will be explaining and taking you through the phases!
Look at the property Repo houses are given up by the owners because they can’t keep or maintain the house so be careful with your choice. The owners often skip payments and fall behind or basically cannot afford to make the payments anymore. Some people tend to get angry when a house is repossessed hence they take out their frustration on the house breaking windows, doors and appliances so be sure to view the house before you buy it.
Maintenance on repo houses tends to be a nightmare when the owners move out. When the place is locked up with no air circulating for months, built-up dirt can cause the entire home to smell. Previous owners may have made changes to the home without getting the proper permits or hiring good labour as a result they have cheap renovations that also make the whole look cheap. A typical example is converting the garage into living space so more people can live in the home and help pay the mortgage how sad!
At times when you buy the foreclosure it comes with no electricity. With no electricity, it can be hard to see what you are buying in some rooms, particularly basements and windowless bathrooms. Also the home may have a leak through the roof or under the sinks, with no one around to take care of small problems as they occur, small problems can turn into big ones.
Vandalism and neglect is a common problem with Repo houses it comes as no shock as many start vandalising the property to get what is in the house so tread carefully!
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