The Drawbacks to Buying Dallas Foreclosure Properties
Dallas Real Estate buyers who are value conscious are lured in by the low listing prices advertised for . They hope to show up at the foreclosure auction and win the lowest bid. Its’ possible, however consider this; many of these houses are not open for inspection prior to purchase. It generally isn’t smart to buy a house that you cannot inspect the interior of. What if there is no interior of the house? If the accepted bid price was low enough to compensate you for the amount of work that might be required to bring the condition of the house back to market standards. Before you rush to buy a Dallas foreclosure, stop to think about the drawbacks and risk if you can't get in the house to inspect it. Is Someone Still Living at the Property? If the house is occupied, the successful bidder will typically be responsible for getting the occupants out, who may or may not be the previous owners. They could be relatives or friends of the owners, renters or squatters. You may have to go to court to have them evicted. It may be wise to contact on or the many professional that have experience in foreclosed properties. · If you are unfamiliar with eviction processes, you should hire a knowledgeable lawyer to handle it for you. · Be aware that tenants or previous owners who are sued for eviction sometimes retaliate and damage the property. · A better solution might be to give the occupants some money to help them relocate and get out of your house. Non-Owner Occupied Homes Example: A seller, unaware that his deed of trust contained an "assignment of rents" clause, meaning, the lender has the right to collect the rents if the owner does not make his mortgage payments, stopped paying on his mortgage and didn't care who he rented the property to as long as the tenants paid him. The seller, fully intending to keep the rent money and forget about his mortgage, the seller listed the rental property for sale. His agent made an attempt to gain access to the property. The tenant looked through the door and then slammed it in the agent's face. Just as soon as the for sale sign was installed in the yard, the tenants stopped paying rent. Neither the lender nor the seller could collect any rent money from the tenants. The agent could not show the property. This was a very nasty situation. This does not only happen with Dallas foreclosures it can happen with any tenant occupied . Condition of Foreclosed Properties Because these foreclosed properties are purchased "as is" from the lender there is no guarantee or expectation of the properties condition. Sometimes it is possible to inspect these properties prior to making an offer but many times, as in the above example, access is not granted and not possible. When sellers realize they are about to lose their homes through foreclosure, it's not uncommon for them to stop caring about the home and burying their heads in the sand. · If they are angry or desperate enough, it's possible they might destroy the house or take everything they can take out, out like doors, hot water heaters and bath tubs. An effective way for them to damage the property is to flood it by turning on all the water faucets, plug the drains and leave. Others will smash in walls, and then pull out the copper pipes and wiring to sell as scrap metal. · Owners will also sell the appliances and kitchen cabinets and anything else that they can. · Some of these people actually leave their animals behind, locked inside without food or water. These people are the worst of them all. Buying Dallas foreclosures is not for the faint of heart. It's best handled by the pros and is not recommended for first-time home buyers. But if you are determined to get a good value on one of these foreclosure home do your due diligence and talk to everybody you can to lean the ins and outs of buying foreclosed properties.
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