Buying directly at a legal foreclosure sale is risky. Among the disadvantages:
– There is no financing. You need cash and lots of it.
– The title needs to be checked before the purchase. If not, you risk assuming a seriously deficient title.
– It may not be possible to inspect the property’s interior before the sale. So you have no idea of the property’s condition.
– Foreclosures are routinely purchased “as is,” which means you cannot go back to the seller for repairs.
– Also, estate and foreclosure sales are the only property sales that are exempt from some state disclosure laws. In both instances, the law protects the seller – usually the heir or financial institution – who has recently acquired the property through adverse circumstances and may have little or no direct information about it.
Posted in: FAQs for Buyers