Foreclosures: The Invisible Issues

When shopping for a foreclosure property, be aware that there’s more than meets the eye to many homes on the market. Some potential issues may not be apparent to the buyer at first glance. Be sure to take a long look at the contract and the home itself, and be sure work with a lawyer and a trusted home inspector—in addition to your real estate professional—before you make a bid.

Since many foreclosed-upon homes are located in areas with high humidity—such as Florida—mold can be an issue, especially in homes that have been vacant for long stretches. The same goes for mildew. Make sure your home inspector check to make sure the home you’re interested in is free of any major mold or mildew problems.

The invisible issues with foreclosures aren’t all structural, some are legal and financial. When a homeowner defaults on a mortgage, the home may have liens or other unresolved debts tied to the purchase. Be sure you have a real estate lawyer look over all the legal and financial issues before you sign anything.