Funds Blog

Things To Think About Before Purchasing An Arizona Foreclosure Property

Buying Arizona foreclosure properties can lead to unexpected expenses. These types of properties are sold ‘as-is’. This means you are taking the risk of buying something that is not even worth what you paid. There would be no way for you to know the real condition of the home before you buy since inspections or appraisals are not allowed before the auction.

You can do some research and find comparable house in the area. Research as much as you can to keep the surprises to a minimum after the sale. Of course there are some things you will not be able to find out but what little you can could make the difference on your decision to buy through the auction process.

Buying something sight unseen can be very dangerous. Even though the house may look nice and kept up on the outside does not mean the inside is the same. The previous owners were kicked out of their home if you were in the same situation would you not be pretty upset with your lender. They were not sympathetic to their financial situation and so the house was put up for sale. Those people probably decided the best way to get back at the lender would be to devalue the house.

They could have dumped things down the toilet to clog the pipes or possibly damage them. They probably left trash everywhere hoping no one could come in to clean it so insects and rodents could make it their new home until it sold. They may have sabotaged the electrical wiring or sprinkler system. Not knowing anything about what could have happened to this house makes it all the more dangerous to try to purchase it with no recourse.

Then you do happen to win the bid so you are required by law to have the house inspected before moving in. The utilities are no doubt turned off therefore you have to pay to have them turned in order for the inspector to complete his inspection. In some cases if the previous customer left an unpaid balance you may have to pay that also before they turn the service back on.

Homes for sale at auctions are cash transactions. A deposit of $1000 is required just to bid. If you are the winner of the bid you will have until 5 pm the following day to come up with the balance of the winning bid. And if you can’t meet that deadline you will lose your deposit and the house goes back on auction.

If you don’t have the cash and are considering paying with a pre-approved loan the bank is probably not going to want to deal with you. They are looking to turn the house over fast. In this economy they are dealing with hundreds of foreclosed properties and they want nothing more than a quick sale. The banks are not going to be accommodating to anyone unless they have cash in their hands.

There is generally a 25% discount on foreclosed homes. Some people think that is a real bargain but think about all the other things you may be responsible for when purchasing an Arizona foreclosure property. Unless you have a lot of money going into this venture don’t think it’s going to an easy task obtaining the home of your dreams.