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When you’re in the market to buy a new home, you’ll probably see a lot of short-sales and a lot of foreclosed homes being offered up at bargain-basement prices. While this may seem like a huge incentive to snap up a great house for a great price, there are some things home buyers need to be aware of if they don’t want to end up regretting the purchase.

Beware of the Current Owner

Oftentimes, owners who have had their homes foreclosed on are not happy about their situation, and for good reason. However, they’ll sometimes take that out on the new owner, trashing the place before they move out/are evicted. If they don’t live there, even if they still own it, you may also have to worry about damage caused by break-ins or vandals. Vacant properties can lead to a lot of headaches, especially if utilities haven’t been turned off and there’s been damaged caused by things like burst pipes. Instead of buying a foreclosed home, look into buying property that’s REO, or real estate owned—owned by a bank or other lenders.

Safer Option: Buy from Banks

A safer option when buying foreclosed homes is purchasing property from lenders or banks. It’s important to note that even if a property is owned by a lender, you should avoid auctions. At auctions, you don’t know what you’re getting into. Purchasing directly from lenders gives you more peace of mind. Many lenders, when they own vacant properties, will protect those homes with things like door guards and metal window guards that keep people out. Protecting the entry points means you have a better chance of buying a home that hasn’t been vandalized or damaged, and also means that surrounding neighbors haven’t had to deal with a dangerous lot on their block. Purchasing a safe property will save you a lot of trouble in the long run, since you won’t have to worry about who has been sleeping there before you and you won’t have to repair damage caused by trespassers.

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