If I buy a foreclosure, are there any surprises of which I should be aware?

Buyer beware! Good deals sometimes come with a price that negates the good deal.  Banks have their own addenda that they will attach to your contract which will vary in different areas so check out the differences early. Foreclosures/bank owned properties often do not have the utilities on because the previous owner didn’t pay their utility bills and usually the buyer is responsible to get the utilities turned on in order to perform inspections. More times than not, at least in our area, the meters have been pulled and have to be replaced, sometimes at the expense of the new owner. So, the utilities are on and you inspect the property. Repairs need to be done. What now? Occasionally the bank who owns the property will allow for some repairs to be done but not usually.  AS IS means AS IS! The bank has so many short sales, foreclosed properties they are just looking to get out! Getting a loan on a property in ill-repair is tricky unless you have money to put down. When you wade through all the inspection and repair issues and head to closing, it would be a good idea to buy title insurance. Know whether you are getting a General Warranty Deed or a Special Warranty Deed. If you don’t have a Realtor® you like and trust, get one immediately, do not pass go, do not collect $200.  I’m just sayin’……………….

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