Advantages and Disadvantages of Buying a Foreclosure *Buying a foreclosed house can mean you get a great deal, but there are some things to watch out for, too: Missed Payments/Motivated Seller Advantages: Seller will be motivated to achieve a fast sale, may create opportunity for below market purchase price. Seller may be more likely to do repairs. Seller might be amenable to providing major closing cost credits and other concessions. Buyer can use regular mortgage financing. Buyer can obtain desired inspections within standard due diligence/contingency period. Seller must legally provide complete history of property’s condition, problems, repairs, etc. Disadvantages: Seller may not be able to negotiate price below outstanding balance of seller’s mortgage(s). Sellers still have to move out. Pre-Foreclosure/Notice of Default (NOD) or Lis Pendens Filed by Lender/Short Sale Advantages: Seller will be motivated for fast sale, increasing buyer’...
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