Purchasing a foreclosed home can be an excellent way to save money whether you plan to live in it, use it to build rental income, or fix it and flip it. The key is knowing about some of the common pitfalls so you don't end up buying someone else's problem and making it your own. The following are some things to watch for.
#1: Check with the city and county
Land use, both of the property and the properties around it, can be a concern with any home but is particularly an issue with some foreclosed properties. Make sure that the property itself is zoned residential. If you want to split a single family home up into a multi-family property, you will have to make sure zoning allows for this before purchasing the home. Another issue are the properties surrounding the home. For example, it can be hard to rent or sell a home if the property next door is zoned for industrial purpose or if there is the chance that a loud nightclub will open one day.
#2: Look for liens
The bank that foreclosed on the property may not be the only ones with a vested interest in the proceeds for the sale. Tax liens and other legal liens can also exist, which can put a damper on your sale. You may get a great deal on the property at auction, but then you can end up having to cover a large amount of outstanding taxes in order to have documentation released to you. Make sure to research the title of the property thoroughly, and ensure that the price you are getting is actually the deal you think it is.
#3: Research any legal problems
Sometimes foreclosure is the least of the legal worries on a property. There may be other legal headaches you will have to contend with once the property is yours. A common problem is if there are already tenants living in the property. If you are planning to rent the home, this might not be a problem since you could also be getting reliable tenants. On the other hand, you may have to deal with the eviction of the tenants if you plan to live in the home or sell it. Issues with the home can also lead to legal problems. Make sure there aren't things that legally require remediation, such as lead paint, contaminated soil, or asbestos. Sometimes a property is foreclosed upon simply because the previous owners couldn't afford these necessary fixes, but then you will be obligated to attend to them before renting out or selling the home.
Work with a real estate lawyer when researching properties so that you can avoid or overcome any issues you run into when shopping for a foreclosure.Share
28 June 2017
The laws governing child custody and guardianship can be confusing. As a family attorney, I have helped many clients gain legal guardianship over a foster child or a relative's child. Getting legal guardianship of a child you are caring for is important because you need to be able to make decisions about that child's education, health care and other matters. This blog will help you navigate the world of legal guardianship and show you how to take steps to get guardianship over a child whether the child's parents are cooperative or not. Legal guardianship does matter even if a child is not going to be adopted. I hope to help people find the way to get this done.