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Foreclosures Homes; An Insight into Their Pros and Cons

Foreclosures are something that is happening across the country, but New Jersey ranks top when it comes to the rankings of states with the most foreclosures. The fact that New Jersey ranks top is not a surprise as it is a figure that has been growing over the years. Due to the high number of foreclosures, it is not hard to spot vacant properties with residents raising complaints about it becoming an eyesore. There are new bills that are being put up by the governor to regulate the amount of time a property can actually remain vacant as well as give the owners of property more control when it comes to keeping their homes. Statistics show that one in every one thousand and six homes is either being auctioned, is in preforeclosure or has been listed as bank property. This is alarming, but the good thing is the number of foreclosures has seen a drop in the current year. While there is plenty of attention surrounding a homeowner who is facing foreclosure or has just been through it, someone looking to buy a home at a lucrative deal is presented with an opportunity in the form of the vacant house. However, some pros and cons surround the purchase of foreclosure homes, and you can read more about them here.

Buying a home in foreclosure rids you of any worries about a title. The purchase of the title is included in the purchase of the home. However, you may end up purchasing a title linked to mortgages and back taxes. Most buyers think that such details are cleared up during the purchase but in some cases, the details of previous ownership of the title are not known. When a home goes through foreclosure, a bank takes it back and holds on to the title.

The ‘as is’ condition associated with buying a foreclosed home can be costly. With the ‘as is’ condition a buyer is presented with a great deal since what they pay for is what they get. If there are any repairs and renovations needed, it is up to the buyer to take care of them. The problem is, such no problems may only be evident to a homeowner who is knowledgeable about this and has fixed up several houses in the past. You may find a bigger project rooting from what you thought was a small surface repair or renovation. In the end, you may find yourself losing a lot of money and time in the process. It is wise to have a home inspector to e a look at a home before you purchase it if you are buying it in ‘as is’ condition.