FORECLOSURES —  sounds like a great deal right?!?  Well yes and no. Yes that generally you get much more of a house for a total price less than another house. No that not always is it better financially if you are concerned with out-of-pocket expense.

Many foreclosures are in such neglected condition that your out of pocket expense will be much greater. Many foreclosures are not FHA loan approved which would have let you put only 3.5% down as of this writing. You could go with a conventional loan, if you can get approved, but you’ll have to put at least 5% down plus you’ll need a way to pay for all the renovations. Now depending, you might be able to get a FHA 203k loan which will allow you to escrow in the repair cost but every loan and house is on a case by case basis. You’ll need to work with a good loan officer that is very familiar with 203k loans as they are tedious and require a lot of specific guidelines to be followed.

In short, the reality of buying a foreclosure is not always what it seems. Work with a good Realtor® who is familiar with possible issues or pitfalls so if you do go this route, you end up in something you can work with and can actually afford.

Candace Gustine // 901-264-9872
Realtor® and Investment Property Sales
www.realestate.candacegustine.com

Posted via web from candace