Dangers of Foreclosures

Times have changed, a lot of people are still facing financial shortfalls. There was a time when people were so concerned about their image they would do anything to keep that image up. Allowing your home to foreclose & walking away from a mortgage was something that was almost unheard. When people do have their property foreclose they sometimes decide to take out their anger & frustration against the mortgage company by inflicting physical damage on the property itself.

Many realtors are pushing their clients toward foreclosed properties. However there are some challenges to purchasing them and some red flags to look for before deciding to purchase one.

1. Don't expect to make friends.

When you are purchasing a foreclosure then you are dealing directly with the bank. It's strictly business for the bank, they don't care about how good a neighborhood it is to raise your kids or about the school PTA. Nevertheless that could be a good thing because the bank is not in the real estate business. They want to move the property as quick as possible but they want to maximize their profits in the process.

Because you're dealing with a bank, not an individual homeowner, be prepared to wait for a few days, if not weeks, for a response. For the most part, the bank's agent doesn't even show the contract, the pre-approval letter, or any of the offer pieces to the bank. Instead, the bank's agent inputs the data into a website or piece of software. Remember for the bank, they are like Jerry Maguire "Show Them The Money."