Buying a foreclosure isn't easy ...
... or cheap. You would think it would be and a few prospective clients of mine have shown interest in buying foreclosed properties that might be available in the Charleston South Carolina real estate market considering the media coverage trumpeting the numbers of homeowners in default on their mortgage loans.
As to the actual numbers, thankfully, foreclosures in the Charleston real estate market are not as plentiful as in many other markets around the country. Certainly, there are some and it is expected that there will be more as some of the more exotic loan products buyers used to finance their home purchase reset to higher rates and subsequent less affordable monthly payments.
Teresa Boardman, a fabulous real estate agent and blogger extraordinaire from St. Paul Minnesota recently wrote a post about how difficult it is to deal with the banks who must dispose of foreclosed property.
It isn't easy.
"banks do a lousy job selling the real estate they own...you would think they would have a system for liquidating property when they end up owning it. Buyers need to understand that when making an offer in a bank owned property it can take weeks to get the offer presented and then accepted, or rejected. They don't seem to negotiate offers like other sellers do, they just accept, or reject and wait for a better offer."
Please read, When the bank is the seller.
And the condition is generally deplorable. And an important point, a foreclosed home is generally not as cheap as you might think either. Often times, you will do even better buying a pre foreclosure with a motivated seller.