What many people are finding out right now is that they can get a home loan and get into a foreclosed house that’s much bigger or has more amenities than a house that hasn’t been foreclosed. The upside to the housing downturn is that people who are able to buy houses right now can get quite a good deal.

A feeling of guilt

While you might feel it’s tragic that it comes after someone else’s loss, the fact is that it isn’t always a loss. In many cases, the family or individual who lived in the home has been able to find either a home to rent or a home they can afford.

So that first downside that many people feel when buying a foreclosure – that they’re taking advantage of someone else’s pain – isn’t necessarily true.

Disrepair

Unfortunately, this one is pretty common when buying a foreclosure. In some instances, the former owners may have caused damage to the house in the process of moving out. There are even stories of owners taking a furnace with them when they move. Of course, that’s against the law, but it does happen.

In some cases, you may be able to wrap in the cost of certain repairs into your home loan. There are also a number of different programs out there that will allow you to receive a no-interest loan that’s forgivable over 10 years just for fixing up a foreclosed home.

Vandalism

In some cases, when a house is foreclosed and left empty for a certain amount of time, you’ll find that vandals have come along and caused certain damage to the property. Whether it’s something simple like broken windows or more nefarious like structural damage, this can be frustrating to deal with.

Utility problems

When a home is foreclosed, the utilities are often turned off. Depending on the home’s location and how it’s built, this can be a real concern. For example, if a sump pump is turned off, the basement could flood. If it’s left in this condition over the winter, this flooding could freeze and cause structural damage.

Ultimately, buying a foreclosed home can be a great investment. Before you sign your home loan papers, however, make sure you thoroughly inspect the home and have a professional look at the home for signs of potential problems, both current and ones you may face down the road.

Photo via taberandrew