I’m often approached by a buyer looking to view a foreclosure property (often noted as Court Ordered Sale in the MLS listing) in the hopes of getting a “great deal”.
Court Ordered Sales are a result of a bank or lender receiving conduct of sale due to a home owner neglecting or refusing to make their mortgage payments.
In these circumstances the bank must show the court that the property is being sold at “fair market value”. If the home is in good condition and has been cared for by a homeowner, you will often find that the homes are sold within the range of other homes in the area.
There are certainly deals to be had but those are usually a result of some stigma or history with the home that renders it a challenge to sell. Fair market value may just be a reflection of deficiencies with the home. The bank or lender isn’t likely to be aware of deficiencies with the home. As they are not the homeowner; they have not resided in the home. Court Ordered Sales are sold “as is where is” so a buyer must be prudent in investigating the property.
Armed with right information, knowledge and patience, the informed buyer can certainly reap the reward of a foreclosure provided they have done their due diligence and elicited the help of the right experts to ensure they are fully aware of the state of the property.
If you are considered buying a Foreclosure/Court Ordered Sale and would like further information about the application, offer and court process, please contact me today for a no-obligation consultation.