Wednesday, April 22, 2009

Foreclosures

Are you considering buying a foreclosed home? A foreclosure may be a good deal or a really, really bad deal. The problem is that you usually don't know if it's a bad deal until it's too late.

If an owner was unable to make the payments on his or her home, how likely do you think it is that they made all the necessary repairs and performed the maintenance to keep the home in good shape? How much will you "save" on buying the foreclosed home vs. how much will you have to spend to make that home livable? Keep in mind, $25,000 to fix up a foreclosed home costs you $25,000 but $25,000 in purchase price only costs you about $140 per month at today's mortgage rates.

When buying a home, look for the best value not the best deal. What is important for you and your family excluding price? Start there then find a home that matches that criteria at a price you can afford. Mortgage interest rates are incredibly low, stretching your buying power. Now is definitely the time to buy but you have to buy right.