What You Need to Know When Buying a Foreclosed Kenai Home
If you are buying a home and getting a great deal is important to you, then purchasing a foreclosed Kenai home might be your best option. A foreclosed Kenai home happens when a bank has taken possession of a house because the homeowner was unable to pay the mortgage. Because banks do not want to own properties, they sell these houses in an effort to recoup the money that they have invested into the house.
This means buyers are often able to get a deal on a Kenai house by purchasing it at under market value. However, the process is not like a normal real estate transaction.
Here are some things that you need to know when considering a foreclosed Kenai home.
Looking for a foreclosed Kenai home
There are actually real estate agents that specialize in REO listings. REO stands for real estate owned or bank-owned property. When you work with an agent that specializes in this area, they often have connections that allow them to find these properties easily. While any agent can help you look at a foreclosed property, working with an agent that specializes in the area can help give you the edge.
What are the potential problems of a foreclosed Kenai home?
When you buy a Kenai house that is being sold by a homeowner, you have room for negotiations. If the home inspection turns up a leaky roof, you can negotiate the price with the seller to have the roof fixed when you move in, or you can ask them to make the repair before you close on the house.
When you buy a foreclosed Kenai home, you do not have this luxury. Lenders that sell foreclosed homes sell them “as is.” This means you can pay to have a home inspection completed on the house, but the lender is not going to make any repairs based on what you find.
Some foreclosed homes are on the Kenai market for a long time. This means that they can succumb to damage from no one living in the house. Potential problems could include mold, pests and termites, broken pipes, etc. Rarely will you find a foreclosed Kenai home that is in pristine condition. So if you plan on purchasing a foreclosed home, you need to plan on a renovation budget or repair budget for when the house is yours.
It’s also important that you have a title search done when buying a foreclosed property. If the previous homeowner was unable to pay their mortgage, there is a good chance that they were not paying the taxes on the property as well. This means that you will have to pay back taxes on the property along with purchasing the house. Depending on where the house is located, this could be a hefty fine.
It can take longer to close on a foreclosed Kenai property
Lenders tend to drag their feet when closing on the property. That means the process of getting your offer accepted could take longer than normal. If you need to move into a Kenai home quickly, then buying a foreclosure might not be your best option.
While there are concerns about buying a foreclosed Kenai home, there are also a lot of benefits. It is often a great way to find a house in a good neighborhood at a good price. But know what you are getting into before you write an offer to make sure there are no surprises.