In Part I of the series Inspecting Foreclosures, I talked about the importance of conducting the inspection and the necessary "due diligence" needed to undertake in 
order to make an informed decision on these properties. More often than not, the main conditions found with foreclosures revolves around maintenance - or lack there of.
When the home owner gets caught between the proverbial rock and a hard spot of making the decision as to whether to fix the broken gutters or repair damaged siding or eat, doing even the most minor repairs will not be a high priority. Neglecting even the smallest of repairs can manifest themselves into larger even more expensive repairs over time.
A good example of what I am talking about is this damage to the siding. Had it been repaired early on, it could have been a quick fix with little or no damage to the interior
of the property. Having been neglected for several months, the repair to the property will be more invasive and costly.
These real time expenses need to be added to the bottom line as to what your total investment will be into the property. Not what the bank is asking. When home inspectors point this out in their report, now is the time to do your homework. Get estimates from several contractors as to the cost of repairs. Rule of thumb - get 3. Make your decision based on what you will get for your money.
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This is a a great series for everyone from first time buyers to investors to those looking for a great deal.
Michael - I think that most buyers don't understand how important it is to have an inspection before buying a bank owned property. It's usually going to have a surprise somewhere.
Hi Michael, Nice post. Thanks for sharing.
Best - Sash
Michael,
You may want to add something about getting an "enhanced title" when purchasing banked owned property. This protects the buyer not only from the past but also future liens. They cost about 10% more then a standard plan, but they would be well worth it.