The Advantages and Disadvantages of Buying Foreclosure Homes

New Jersey is the state with the most foreclosures although they have become a thing all over the country. The high rate of foreclosures in New Jersey is not a new thing as this is a figure that has been on the rise in recent years. You can easily spot a vacant foreclosure anywhere in the state of New Jersey with residents complaining that it has turned into more an eyesore. There are new bills that are being put up by the governor to regulate the amount of time a property can actually remain vacant as well as give the owners of property more control when it comes to keeping their homes. At least one in every one thousand and six homes has been put up for sale, is in preforeclosure or has become the property of the bank according to statistics. Although it is a cause for worry, the number of foreclosures has seen a significant reduction this year. While there is plenty of attention surrounding a homeowner who is facing foreclosure or has just been through it, someone looking to buy a home at a lucrative deal is presented with an opportunity in the form of the vacant house. However, some pros and cons surround the purchase of foreclosure homes, and you can read more about them here.

When buying a home in foreclosure, the title is not something to worry about. As soon as you are buying the house, you also gain lawful ownership of its title. However, you may end up purchasing a title linked to mortgages and back taxes. In some cases, details about the owners are not even known, making it hard to clear this up. When a home goes through foreclosure, a bank takes it back and holds on to the title.

The ‘as is’ condition associated with buying a foreclosed home can be costly. As a buyer, you are presented with a great deal thanks to the ‘as is’ condition which means what you see is what you get. If there are any repairs and renovations needed, it is up to the buyer to take care of them. The problem with this is that the new owner may not be aware of the problems unless they are knowledgeable and have fixed up a number of homes before. You may be deceived into thinking that a surface only needs a small repair or renovation but it could turn out to be a big problem that needs a bigger project to solve. A this may end up being time-consuming and too costly. It is wise to have a home inspector to e a look at a home before you purchase it if you are buying it in ‘as is’ condition.

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