A mist the declining market, and rise in jobless claims, pre-foreclosure and bank owned homes (REO's) have become a substantial part of the housing market.
If you are in the process of searching for a home, then the pre-foreclosure and REO homes seem like a great deal, right?
Foreclosure experts agree that if you don't know what you are doing a pre-foreclosure or REO could cost you a lot more time and money without the proper inspections. If you have completed a general home inspection, mold inspection, termite inspection, then you should know the real conditions of the building. Buyer Beware! The problems with the pre-foreclosure and REO homes is they sit dormant and regular maintenance is differed (sometimes even ignored).
The Real Estate Mold and Water Disclosure Agreement is a great way for buyers to learn about the history of their new home from the current sellers. The information becomes skewed only after the original owners of the home are evicted and the banks are now left to disclose such information. "Lately, the banks have been requesting moisture damage and mold growth investigations on properties pending the future sale." Robert Santanastasio
A home at auction is probably the worst type of home to buy if you are unaware of the risks. Often times, during this type transaction period buyers are not able to inspect the home before they purchase and are unaware of any liens on the property.
The home inspection process can reveal problems that buyers are unaware of inside the home. Anything form broken or cut pipes to leaky and faulty roofing systems. People loosing their homes become malicious and cut or damage water pipes. in some cases, one inspector notes that concrete had been poured down the toilets of the home.
Although most of us shopping for a good deal will always try to make the proverbial lemonade from lemons, this may involve buying a home with a few problems. When a home inspection indicates moisture intrusion on the property, your next step should be to hire a mold inspector. By using different tools within the water damage industry a certified mold inspector can help you properly asses the problems that may exist within the property.
If you plan on purchasing a pre-foreclosure or REO property a water damage - mold inspection is a great idea. This will help you isolate any existing problems, identify hidden or underlying problems, and help you predict any future problems.
Local Information:
By the numbers, according to AOL Real Estate, over the last 12 months, Poway's home prices have depreciated by 15 percent. There are 494 homes for sale in Poway, including 913 foreclosures. And between February and March of this year, foreclosures in Poway were up by 40 percent, according to DataQuick Information Systems.
The RealtyTrac April 2011 U.S. Foreclosure Market Report finds foreclosure filings dropped 9% compared to March and 34% from April 2010, largely due to delays in foreclosure processing.
The April decline marks the seventh straight month the total number of default notices, scheduled auctions and bank repossessions decreased year-over-year down to a 40-month low.
James J. Saccacio, chief executive officer of RealtyTrac, Irvine, Calif., described the slowdown as more of a status quo than a housing recovery lifting people out of foreclosure. Author ISGN
Written by: Robert Santanastasio, CIEC
http://poway.patch.com/articles/foreclosure-properties-not-always-a-deal-experts-say
