FORECLOSURES, GREAT DEALS WITH HIGHER RISK PT. II

To continue my rant on this hot topic on foreclosures here’s Part II explaining why buying foreclosures have higher risk:

• Foreclosures are sold AS-IS. I tell all my clients that when you buy a foreclosed property you are purchasing it AS-IS, which means the bank who owns the property will not agree to complete repairs or provide any credits in advance. So the tactic of buying a foreclosure and then asking for a HUGE repair credit won’t work. However, the buyer sill has a right to ask, after all the worst thing that could happen is that they say NO! I encourage credit or repair requests especially if there are significant repairs that involve mold, water damage, tenting the home for termite repairs. Some banks will often provide the termite and retrofitting reports during negotiations. If the cost of such repairs proves to be a significant amount of money, I will always advise the client to ask for a credit upfront to help pay for those repairs. With that said, I would advise anyone looking to purchase a foreclosure to not buy one if you assume the bank will do repairs or provide credits. It’s just not realistic in our current market.

Stay tune for Part III....

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Written by Mark Gonzales Copyright 2008
Mark Gonzales, Realtor, real estate agent specializing in marketing and selling residential homes, condos, and commercial real estate sales in Los Angeles, San Fernando Valley, Woodland Hills, Sherman Oaks, Studio City, Encino, Tarzana, Calabasas. Please visit www.MarkSellsLA.com for more information.