Foreclosures can be tricky business and there are a lot of misconceived notions attached to it. Real estate expert, Jeff Adams helps debunk seven of the most common myths about foreclosures.
1. Only Poor Areas See Foreclosures
Over the last few years, all areas have seen properties being foreclosed. Whether it is low income houses or properties worth millions, the rising interest rates and decrease in property value have resulted in many house owners finding the need to sell properties. This means that you have a pick of houses across a wide economical spectrum to choose from.
2. Most Foreclosures Are A Result Of Financial Irresponsibility
In order to get a home in the first place, you have to be financially responsible. A foreclosure is usually a result of some sudden unforeseen incident or a severe economic blow. Sometimes a severe accident or a sudden loss of job will render the house owner unable to keep up with mortgages. This is not a result of irresponsibility, just bad circumstances.
3. Most Of These Properties Are In A State Of Disrepair
While admittedly, most of these houses are not in the most ideal state, they are not in ruins either. Usually, the repairs you see are a result of regular habitation of the house and are minor. Sometimes, if the property is in the hands of a lender for too long, it can result in infestation of rodents or other pests but the eradication of these issues can often be worked into the agreement with the lender.
4. Lenders are Eager Foreclose On Homeowners
Usually a foreclosure is the last option the lenders resort to after all other options have been exhausted. State laws require that lenders wait between 27 – 270 days before foreclosing a house (it varies from state to state). This gives house owners ample time to get their finances in order. Failing all other plausible options, the house is seized and foreclosed.
5. Foreclosed Homes Are Available At Great Discounts
These houses come at a discounted price but do not believe any deal that promises more than a 20 percent reduction from its total sale value. Jeff Adams believes that if any house is being sold at a rate lesser than that, there is always a catch. Check your investment thrice before the final sale is made.
6. The Homeowners Are Taken Advantage Of
A sale like this may seem like it puts the home owners in a poor spot, as it may seem like they are losing a lot. However, a foreclosure sale can help the sellers get their financial stability and improve their credit. This is beneficial to them in the long run as it would help them regain economic stability to invest in another home later.
7. Foreclosure is Only For Professional Investors
This was the case when the concept of foreclosures first surfaced. But in the present day and age with the multitude of options available, this is an option for anyone looking to buy a home. There are also many experts who specialize in foreclosures and will be able to guide you towards owning your perfect home.
Jeff Adams has been in the foreclosure game for several years now and has significant experience in the market. Sign up for his learning courses to learn from this legend on how to maximize your investment in real estate.
