Ever since the real estate boom and crash in the mid-2000’s, many home buyers inquire about buying a foreclosed property. While the foreclosure trend likely peaked around 2011 (according to many real estate experts), it is still a common topic.
Foreclosures are caused by homeowners defaulting on mortgage payments. In the event of a default, the bank can take possession of the property from the borrower. While the thought of individuals and families getting removed from a home can be an uncomfortable topic, foreclosed homes can be a nice opportunity for home buyers looking for bargains and willing to stomach a non-traditional home buying process.
Foreclosure properties are often sold at auction. It is commonly advised that only seasoned real estate veterans participate in auctions as these events require a significant amount of cash on-hand and you face the possibility of going head-to-head against a cut-throat real estate investor. Additionally, foreclosures being sold at auction are often auctioned off without the ability to inspect the property.
Inspections on foreclosed properties are especially important considering the condition of such properties can often be an issue. While the purchase price of a foreclosure might be lower than a comparable home nearby, factoring in a budget of possible repairs is an important consideration.
Foreclosures in Fredericksburg, TX can be worth pursuing, but we strongly encourage partnering with a trusted real estate professional to guide you through the process. The foreclosure process is more complex than purchasing a non-foreclosure, so leaning on the advice and experience of a professional is a must.
Are you in the market for a home in Fredericksburg, TX? Contact us today.