New home buyers in recent days are getting much interest in buying foreclosed homes. It is mainly for the huge discount offered by the banks who has the possession. But buying a home is a big investment. For this reason you must verify the foreclosed home before making a purchase.
Types of foreclosed homes:
You'll find many properties which might be declared as "foreclosures”. Mainly there are two types -
1) A "pre-foreclosure" - A home which is still owned by its owner and not foreclosed yet but might be falling into it.
2) A "foreclosure" - Properties which are listed for buying and occupied by the creditor or the lender. The selling amount will be used for repaying the loan.
You can buy a pre-foreclosure home from a homeowner directly. On the other hand, foreclosures can be purchased through auction hosted by the banks or creditors. The properties will be categorized as bank-owned properties or real-estate owned homes.
Here are some dead ends which may point out that a particular foreclosed property is not suitable for you :
a. Lack of owner pride - Closely visit the area. If you notice that most of the fences, gates and other permanent structures need enough maintenance, lawns are kept un-mowed, trees and foliage are messy, you must walk away from the area.
b. Criminal activity - You must enquire about the facts on possible criminal activities in the surrounding areas and neighborhood. You can avoid such properties and neighborhoods with signs of graffiti and vandalism. These are the main indications of local gangs or thugs. So its better to stay out of their area, and find another safe place.
c. Abandoned properties - You must avoid such properties which has most of it's surrounding houses damaged or boarded up as closed. This is not a good sign. There must be some reason for which the buildings are vacant of that area. So, you should avoid that particular house also.
d. Dirty or damaged roads – Generally, not a single person in this planet would recommend a house which have dirty or damaged streets nearby. Roads full of trash, stinky oil patches leaked all over the road disturbs a normal buyers mentality. Streets covered with broken glass, mud, dirt and other stains doesn't look beautiful. The properties will lose their appeal and you might not want them to be your dream home.
e. Distance from facilities – You must consider the distance from available services and facilities. Essential services includes schools, colleges, hospitals, railway station, airport, grocery stores, banks, pharmacies and other facilities nearby. Just think, is it helpful if you have to walk an hour just to buy veggies, or have to travel miles for reaching school? Look for the local shops. Try to avoid them if you find out they are not so updated and providing old/expired commodities.
f. Easy roads – It will be harder to reach different places easily and quickly if the neighborhood roads are not easy enough. If the neighborhood doesn't have the short and easy ways to connect with the highways, it will be very difficult for your transportation. Existing roads must well maintained, properly indicated and free from heavy traffic.
g. Not too close to highway - Being too close to the major roads or highway may be hard for you also. Practically, you wouldn't let your children all day looking from the windows to watch a busy highway right outside their room. The continuous sight and sound coming from nearest highway might be unhealthy for you and your family. There must be some sort of obstacle like a wall, a hedge, trees or fence which should block the view and noise. If it isn't, it is a home to reject immediately.
h. Industrial sites - Having factories and industrial buildings in your town is ok. But you doesn't want a fully functional factory in your backyard. So, Make sure there shouldn't be any industrial buildings near your residence. The noise, smoke, wastage materials and fumes came from the factories can spread pollution and can be very harmful for the whole neighborhood.
So, these are the indications which can help you to separate yourself from bad foreclosed homes. In my next post, we will discuss about how to recognize the qualities of a suitable foreclosed home. Till then read previously posted contents.