Salt Lake County Foreclosures Explore Foreclosures in Salt Lake County, Utah!
Foreclosures in Salt Lake County, Utah
The upheaval over the past several years concerning the financial marketplace has put two “lions” at the forefront who continue to wave white flags along with large signs that say: “Buy me now, please!”
Investors and new homebuyer wannabes known them as short sales and foreclosures and you can easily spot them flying lazy circles like vultures over auctions on courthouse steps in the Salt Lake city, UT area, ready to swoop down with the thought of making a sweet deal at the lenders expense.
That said in order to keep you sitting in the foreclosure front row, checkbook in hand, allow us to present the good and the bad about foreclosures plus a clever caveat you may have heard about but not sure how it works called: Pre-foreclosures.
First, though, let us separate the foreclosure process from the pre-foreclosure so you will know the difference and can be prepared and knowledgeable as you agent or lender.
Benefits In Purchasing Foreclosed Homes
According to a national processing service last year almost 2.3 million homes in this country were in foreclosure. Many of them sold, on average, for about 30 percent less than homes not in foreclosure.
The reasoning here being that investors and homebuyers can negotiate most all the “playing cards” the lender has that include appraisal fees, closing costs and interest rates. If you have good credit and a FICO on the north side of 725, you can name it and claim it. Banks are strangled by foreclosures and will usually take what they can to get the home “off the books”.
Foreclosed Home Negatives
About 67 percent of foreclosed homes in many distressed states is in a crisis due to extensive time on the “for sale” list and neglect; think Detroit, MI. Some properties have been sitting vacant for months, even years, with no action.
Sure it may sound like a “good deal” but most vacant homes anywhere that have been sitting neglected have only beer cans, cigarette butts, scorpions and snakes, and urine smells as tenants, and may not be your first choice.
On the other hand, if the home is in a decent neighborhood and you are a “handy person” with tools with a high tolerance for defects, your purchase could turn out to be that rainbow pot-of-gold.
Do not Buy An “Auction” Foreclosure Sight Unseen!
Make the sales purchase contract subject to a home inspection at your expense plus a title report on the home to verify there are no legal issues to be concerned about in the “history” of the property. If all is well, maybe cut a sweet deal, and the home inspection shows no plumbing, roof, radon, or concrete structure conundrums, give it strong consideration.
About that pre-foreclosure mentioned earlier. There is a short period of time when the homeowner is warned they are in default. If you have a Realtor friend who has a list of pre-foreclosure homes, this is time to contact the owner, bail them out with a lowball offer they cannot refuse.