Incentives For Using Caution When Buying A Connecticut Foreclosure
In these difficult economic times many people are losing their homes
. Unable to make house or tax payments any longer, many of these homes go into foreclosure. The foreclosure price is much lower than the original one and looks like a real bargain. In some cases it is, in others it is not. Connecticut, at last record, was 8th in a list of states with the most foreclosures. There are several reasons why one should use extreme caution when considering purchasing a Connecticut Foreclosure.
When first viewing a foreclosed home for the purpose of a possible purchase everything may look great. The house looks like it is in good shape and may need minor repairs, but the difference between the price and the original value is usually so great that there is little concern about 'fixing it up.' However, there can be many hidden damages that have been cosmetically repaired.
One purchaser of a foreclosed home found that there were rats in the attic. These rats had eaten the insulation off the electric wires resulting in an extreme fire hazard. The cost of removing the rats and replacing the wiring was quite an unexpected expense and, in the meantime, the owner was in a state at the those of rats living in the walls and attic.
Many times such things as electrical or plumbing, which is hidden behind the walls, will need replacing. This can be very expensive and add considerably to the price paid for the building. These things are not visible to the naked eye and can only be discovered after occupation has taken placed. This is a common problem with foreclosed homes.
One of the newest problems in Connecticut and elsewhere is in the surge of scam artists working in the foreclosure market. They mail out a foreclosure list showing homes listed at an unbelievably low price. In truth, these homes are not in foreclosure and are not for sale. Anyone responding to these kinds of advertising ploys thinks they are getting a bargain when, in reality, they are losing whatever the upfront money they are required to pay. It is imperative, therefore, that one go to a legitimate firm when looking for foreclosed property.
There can also be hidden trust deeds against a property. While one usually has a Title Insurance Company to guard against this possibility, it is not always effective. One very important item to checkout before any purchase is made is the property tax which can be very high. Some states keep the same tax on a foreclosed home even though the purchased price is much lower.
In purchasing a foreclosed home in Connecticut or anywhere else with the idea of having a rental income requires some careful investigation. What renters are paying, is there a glut on the market of rentals, is the location in a place that would be easy to rent, are all factors that need to be considered. When becoming a landlord there are many questions that need to be asked and investigated before a commitment is made.
Contracts or purchase agreements are common in any real estate transaction. In Connecticut Foreclosures, depending on the county, it is made out either by a real estate agent or a lawyer. Many people skip through these pages before signing and that is a mistake. The real estate agent, for example could add a fee, unbeknown to the buyer. This is wrong as the financial institution selling the property should pay this fee, but many are taken by this because they have not done their homework which is the #1 rule in buying property.
by: Shawna Wright
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