Clearing Up Foreclosure Misconceptions

Anyone in the market for a new home is looking for a great deal. Chances are you may have come across some foreclosure listings in your home search, but may think going this route is too risky. Buying a foreclosure may not be the same as buying a traditional home, but it’s not as challenging as one may think. Especially if you know what you’re in for. By understanding and debunking some of the common misconceptions around purchasing a foreclosure property, you can make a more informed decision about your next move. Read on to learn more!

Common Foreclosure Myths

Foreclosed Homes Are Massively Discounted
Not all foreclosed homes sell at extremely cheap prices. Some people have the misconception that because the former owner was unable to pay his or her mortgage, by default, the foreclosed home will be sold for next to nothing.

Banks Are Desperate to Sell These Properties
It’s true that banks probably aren’t thrilled about having a foreclosed property on their hands, but they certainly aren’t desperate. The bank doesn’t actually lose anything by holding onto a property, so they likely will until they can get a fair price.

Foreclosed Homes Are in Bad Condition
Another common myth about foreclosures is that they’re likely to be gutted and trashed. While the stories of foreclosed homes missing pipes and plumbing are more likely to stick in your mind, they shouldn’t be taken as the rule for all cases.

Foreclosures Happen Fast
Unfortunately, there’s no truth to this one. Foreclosure can be a long process, sometimes taking many months. Usually, by the time a foreclosure is on the market, the process is in the final stages, but it can still take time.

Hidden Costs Associated with Foreclosure
Actually, most of the costs of buying a foreclosed property – like closing costs – are the same sorts of things you would encounter with any home on the market.

If you’re ready to consider foreclosure properties in your home search, the best thing you can do is find a pro to help you with whatever questions you may have. Give Metrowest a shout today – we specialize in these types of sales and would love to help you start the process!

Ken Blevins

About Ken Blevins

Ken Blevins, CEO of Metrowest Real Estate Services, is a veteran in mortgage and default servicing with more than 24 years of experience in collections, foreclosure/bankruptcy, loss mitigation and real estate disposition (REO). Blevins was an original co-founder of Metrowest in 2003, a Real Estate Brokerage and Services Company focused on the resale, recovery and liquidation of distressed real estate in Denver, Colorado and surrounding metros. Blevins assumed the role of CEO in January 2014 and provides strategic direction and has management accountability for the day-to-day operations. Under his direction, Blevins drives all default management operations to maximize asset value recovery and reduce loss severity through a strategy focused on customer service and state of the art technology. Blevins has 18 years of direct operational experience in all facets of REO Asset Management having managed large national REO Disposition contracts for Fannie Mae, Freddie Mac, Wells Fargo, JP Morgan Chase, CitiFinancial, GMAC Mortgage and other various financial institutions. Blevins specialties include REO asset management, real estate investment, bulk REO acquisitions and distressed asset recovery and liquidation, and he has directed the resolution and liquidation of over ten billion in institutionally-owned residential real estate.

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