Given the recent national press regarding an increase in home foreclosures across the nation, many are investigating the possibility of purchasing these homes at a discount to current market value.
Foreclosure properties generally fall into two broad categories: 1st conventional Bank Owned properties and 2nd properties being sold by government departments such as the Department of Housing and Urban Development (HUD) or the Veterans Administration (VA).
Caution should always be exercised when considering making an offer on a foreclosure property:
- Generally these homes are sold-as-is, thus inspecting these properties and calculating detailed repair estimates must be considered carefully.
- Some of these listings have a ‘First Right of Redemption’ clause allowing the original owner the right to purchase the property at the exact same offer price the Bank is now willing to take from you. Thus you could loose your investment of time, energy, and monies used to investigate a particular property.
- The listing price on many of these properties may not really be a bargain, as the financial institution will be attempting to recover the balance of the mortgage along with any carrying cost expenses it has endured.
- Utilizing a local REALTOR® who is familiar with local market conditions and pricing could prove invaluable in your property search.
While Alabama has one of the lowest foreclosure rates in the nation there are still some current active listings in the North Alabama Area which can be browsed by utilizing the custom search links bellow: