Thinking of Springing for a Foreclosed Home? Check for these 5 Problems First

Popularmechanics.com has an article on what problems to anticipate or check out when buying a foreclosed home.

Foreclosed homes can sell for a fraction of their original worth, and may seem like a steal: A fixer-upper at a low price. But Brion Grant, president of the American Society of Home Inspectors, tells PM that while there are plenty of good deals to be found on the foreclosure market, these homes can also harbor unpleasant surprises—including wild boars. Here are the most common problems that might mean a foreclosed home is a money pit in the long run.

What could be applicable here in the Philippines, would be neglected maintenance.

“Most maintenance stops when the payments are no longer being made,” Novak-Smith told PM. Grant said people who know they’re losing their house don’t typically care whether they keep a fresh coat of paint on the walls or if tiny roof leaks are sealed. Mechanical systems frequently suffer in a foreclosed home because they need a fair amount of care, he said–foreclosures frequently have heating systems at the end of their lives, often prematurely so because the homeowner neglected routine maintenance, like cleaning the filters or bleeding the radiators. The ventilation systems are often forgotten, too, he said, which can lead to mold problems. Home buyers looking at foreclosures need to bear these facts in mind, Grant said–they could be inheriting a much larger and costlier repair job than they first expect.

You’d be lucky if the property has a caretaker. But despite the presence of a caretaker, some banks don’t bother to have any of the “house problems” repaired – for instance, bad plumbing, or dilapidated ceilings. They’d rather the new owner fix it – which only means you can bargain or negotiate even more if that’s the case.

 

Read more: Thinking of Springing for a Foreclosed Home? Check for these 5 Problems First – Popular Mechanics

 

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