Foreclosure Properties in Jacksonville, NC

Foreclosures are advertised as hyper property bargains.  This is why potential home buyers and especially preperty investors frequently consider them.  On the other hand, some people shy away from it, because it represents a major part of people's misfortunes and there is a lot of confusion surrounding foreclosure homes.  Nonetheless, if you should ever decide to look at buying  aforeclosed home, there are some important details you need to establish.


1.  Know if there are any liens and encumbrances on the property.  Liens and encumbrances are legal claims to a home by virtue of any outstanding obligations like unpaid contracts, outstanding taxes, and most commonly, mortgages.  An attorney will perform a title search prior to closing, but do your homework.  To have the ownership tranferred to you, you would need to settle all outstanding obligations on the property.


2.  Know the extent of maintenance, repairs or retoration work that needs to be done and put that budget in as well.  Foreclosure homes are typically sold "as is", with very little negotiating.  People who lose their homes to foreclosure have the propensity to vent their frustrations out on the house.  Not always, but usually.  Check the plumbing, electrical, roofing, insulation, walls and other detials.  Look for leaks, drippings and items that may need to be put in order before the homes become inhabitable.  Consider getting a home inspection.  It can cost around $200-$250, but can save you thousands in the end.  Typically you are going to put some elbow grease into a foreclosure home.  So know what the repairs and restoration is going to cost you and if it is worth it.


3.  Know the equity built up in the property.  The longer the previous owner owned the home, the higher the equity built into the property.  Statistically, in the Jacksonville market, a homeowner owns their home for 3-5 years.  That's not a lot of time to build equity in a home before foreclosure.  Because of this, typically foreclosures in this area are close to market value, but can be sold for up to $50,000 under market value. 


Investors who flip properties normally look at foreclosure as very good bargains.  If you are looking at foreclosures, it is best to get professional advice so that you know exactly what your options are, and what the actual economic costs are.  Your real estate professional should provide you with a market analysis that shows you what the market price for the home would be.  With that you would be able to decide how much equity you would be buying when investing in a foreclosure home.

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