Foreclosure buyers - BEWARE

A young couple, with a small child, purchased a house that was a foreclosure recently. When they got the keys after closing escrow they went to view their new home, they found it completely flooded.

There are often problems buying foreclosure & bank owned properties, people who are in foreclosure are not happy campers, and can oftentimes destroy a property causing significant damage when the bank evicts them. The problem for the family who purchased this property is that it can be difficult to get out of these contracts after the fact. The banks are very savvy, and they modify the documents so that they protect themselves (the seller) by giving the buyer shorter periods to conduct the inspections, and having them sign off rights very quickly. If a buyer is uneducated - they can really get caught for a lot of $$$.

Always complete the inspections - surprises can be costly and stressful to navigate once the contract is closed. Additionally, it is important to understand foreclosures and REO's and how they work. It is best to have an experienced realtor to represent you if you are are not a seasoned buyer...