Buying a New Jersey Foreclosure
Buying a New Jersey foreclosure? A lot of people are investing in NJ foreclosures due to the lower prices. While it’s a sad time for many, it’s an investors market with a huge selection of homes available at below normal rates. Here are a few things you’ll want to keep your eyes out for.
Buying a New Jersey Foreclosed Home: Things you need to watch out for
There are many reasons why people decide to buy a foreclosed home. Upfront, a foreclosed home can be an extremely good buy, especially when the price is pegged off a Court auction. If you’re lucky, you’re the only one interested in buying the property in the first place, and you’ll be able to purchase it at your first bid. However, there are things you need to consider before buying a foreclosed home.
Is the foreclosed home in tip-top shape?
How much will you have to invest in the long run? Because foreclosures are rarely ever settled amicably, there’s always the danger that the home you’re purchasing has been vandalized. The homeowners aren’t always the primary culprits here. Unfortunately, most homeowners don’t lose their primary home. Most of the time, they lose the “other property” they’re renting to some other family.
Yes, we’re talking about tenants here, and unless tenants have been properly notified about the foreclosure and their coming displacement, they could raise hell for the banks and/or the new owner.
Talk to the bank about tenants
Although it’s highly unconventional, banks most of the time settle foreclosure troubles with tenants by offering “cash-for-keys” deals. This deal usually covers compensation for the tenant’s loss of security deposit, their moving expenses, and their temporary home fees (motel room fees, etc.).
If the foreclosed home doesn’t have tenants, then all is well for you. Let’s just hope that the neighborhood kids didn’t vandalize the abandoned home themselves. If the home does have tenants, but they’ve signed the cash-for-keys deal with the bank, then you’re probably safe from any vandalized home threats, for now.
