On the surface, a foreclosed home might seem like an unbeatable bargain. But before you put your hard-earned money down on a house, it's important to consider the purchase from all angles and take into account some of the realities of buying a foreclosed property. Below, foreclosure lawyer Jeremy Bueker, Attorney at Law, of Bueker Law Firm in Stuttgart, Arkansas, shares some insights into why you may want to carefully rethink the purchase of a foreclosed house.
You May Not Be Getting the Deal You Think You're Getting
There's a prevalent misconception that foreclosed properties are lightyears cheaper than more traditional types of home sales. In reality, a foreclosure can be just as overpriced as any other home listed for sale. Also, foreclosures are sold as-is, and many of these houses need considerable work just to be habitable, let alone comfortable. So, the purchase price isn't going to include renovations or updates to the property, which could cost you significantly more than you originally intended to spend.
Your Property Taxes Could Spike
If you find a foreclosure that seemingly meets all your needs, is affordable, and doesn't require an abundance of renovation, you might think you've landed an unbelievable deal. Come tax time, however, you could be surprised. Once you've bought the foreclosed property and made it livable, your property taxes may need to be reassessed, and if they are, they will likely go up significantly. This could be a major financial burden for those who were only able to afford the home in the first place because it was in foreclosure.
Your Repair Costs Could Get Out of Hand
Any home renovation can quickly and mightily grow out of hand, exceeding one's budget and trampling over projected deadlines. If you buy a foreclosed house knowing it needs some work, you should have an ample nest-egg in the (quite likely) event that the repairs take more time and investment than you originally thought. If you're on a tight budget with little or no room for additional costs, a foreclosure may not be in your best interests.
If your home is being foreclosed upon, explore your legal options with lawyer Jeremy Bueker of Bueker Law Firm. For over 14 years, he has been representing area residents in foreclosure, bankruptcy, and repossession matters. Call (870) 673-1313, visit his firm's website, or contact them on Facebook to schedule a free consultation with a foreclosure lawyer today.