Foreclosure Home Maintenance

Homes are most people’s biggest investment, and it makes sense to take proper care of them right from the start. Most people do their best to keep up with home maintenance to make their daily living better and more enjoyable as well as protect the investment they made in their home. Even so, there is always something that needs to be done on a house.’ People who are facing foreclosure generally have fewer resources to spend on home maintenance, so, usually; houses in foreclosure need home maintenance even more so than other houses do.

In addition to the minor repairs that most houses need, foreclosure home maintenance may include repairs that go beyond the typical handyman-special repairs that are a normal part of owning, buying, or selling a home.

Just about any home, foreclosure home or otherwise is going to have some or all of these common home repair needs:

• Holes in walls it is quite common to see small holes in drywall. If there are any in your home, they should be fixed.
• Cracks lots of homes have cracks in the sidewalks or on walls or on floor or bathroom tiles. Those are hardly even noticeable when you live with them day in and day out, but others who are looking to purchase a home notice things like that immediately.
• Leaks If your kitchen or bathroom faucets leak, they should be repaired.
• Improperly fitted doors Sometimes the doors of kitchen cabinets or
• Bathroom vanities don’t close exactly correctly. Usually, replacing a hinge will do the trick.

If you intend to invest in an REO property, you are almost certainly guaranteed to be taking on foreclosure home maintenance. The above minor repairs are likely to be a part of the package, and you also may face more major repairs. Foreclosure home maintenance needs often include:

1. Roof repair
2. Foundation repair
3. Major appliance repair or replacement
4. Window replacement
5. Wood rot replacement

Even though the thought of having to do major repairs may seem daunting, the price of foreclosed property may make the investment in foreclosure home repair worth the cost and effort. Of course, you should be cautious and seek professional advice before buying any property, foreclosed or otherwise or in need of repair or not.

When you do become a homeowner, whether you purchase an REO property or make a more traditional purchase, you should always keep your home’s value as high as possible by keeping up with repairs and maintenance, but since the whole reason behind foreclosures is financial, you should expect your foreclosure home purchase to come with a list of foreclosure home maintenance issues.

Foreclosure Home Investment: The Time has Come

Several years ago, right after I purchased my home after a divorce, a housing boom made its way into the American real estate market. Housing prices soared as interest rates fell; sellers had the opportunity to evaluate several offers at a time on one piece of property; buyers scrambled to purchase the home of their dreams before interest rates rose again; some sellers even had bidding wars going on over their property.

All that has changed now! The seller’s market has turned around, and many of those people who were so willing to pay top dollar to get the house they wanted are finding themselves in financial woes. It is now a buyer’s market as houses all over the country sit with for sale signs in the front yard for months and even years at a time. Asking prices are being slashed to the bare minimum; the number of foreclosures is at an all-time high, and economists predict that the number of foreclosures is only going to increase for quite a while.

Regardless, real estate can still offer a decent return on investment if you take advantage of the market conditions wisely. One way to do that is to venture into foreclosure home investment.

Whether you want to purchase a house to live in or are looking for a way to make your money grow for you, foreclosure home investment is a strategy whose time has come. With the increased numbers of foreclosures that have already taken place and the forecast of even more to come, lenders are finding themselves with too darn many houses and other pieces of property in their possession.

Many folks believe that banks and other lenders are thrilled with the idea of foreclosing on a piece of property, but the opposite is really true. Banks, credit unions, asset management companies, and the like would much prefer to do what they are in business to do banking. Most lenders find the foreclosure process ridiculously time-consuming, expensive, and contrary to their fundamental purpose which is to loan and invest money, not sell houses.

With that understanding, it becomes clear that the possibilities to make a profit via foreclosure home investment are upon us. With so many foreclosures already happening and the likelihood of even more in the near future, real estate is available at all-time low prices.

After purchasing a piece of property, you can choose one of several paths to travel in your foreclosure home investment travels. You can purchase a home to live in and sell later. You can purchase a distressed property one that is in need of repair and fix it up to turn around and sell it again. Many lenders find themselves not only owning houses they don’t want, but also owning houses that are in bad shape. They definitely are not in the carpentry business, so fixer-uppers can often be purchased at a steal

You may also consider using your home foreclosure investment as a rental property. All those people who are losing their homes still need a place to live, and they find themselves renting. Some people are hesitant to buy in today’s economy, so they choose to rent as well. Students rent all the time. Lots of people rent.

Home foreclosure investment is an opportunity whose time has come.

Extreme Home Makeover Foreclosure

The economy is in a downward trend. The housing boom that gave rise to about a thousand buy-and-flip-this-real-estate television shows and created little mini-investors all over the country has become more of a whisper than a boom. You know that when even that gorgeous house that underwent an extreme home makeover hits foreclosure, the market is crazy, right? Actually, that is not really true, as when the real estate industry suffers, it is often the higher-end homes and the lower-end homes that take the biggest financial hit.

In the case of the two extreme home makeovers that were shown on television and have ended up in foreclosure, there are probably several reasons why that happened.

Do you remember that old question that people would often be asked to help determine elements of their personality? Would you rather live in the best house in a bad neighborhood or the worst house in a good neighborhood? Well, the best financial answer is the bad house in the good neighborhood. Any realtor will tell you that price is important, but location is paramount. The extreme home makeover foreclosure was probably due in part to the fact that the houses were way too big, way too expensive, and well, way too extreme for the neighborhoods in which they were built. A gigantic house in a sea of modest homes cannot get a true reflection of its worth with the traditional market value approach of comparing prices in a general area.

In addition to the ill-conceived placement of such enormous houses, it is also necessary to take a look at the past history of the homeowners. Most of the people featured on extreme home makeover shows, and definitely the two extreme home makeover foreclosure homeowners are not used to owning such a huge and potentially valuable piece of real estate. Despite the fact that the huge houses located in modest areas are never going to reach their true price-per-square-foot value, they are still more valuable than the other houses in the area, just by their sheer size. People who are familiar with investing and wealth are generally better suited to knowing how to properly handle it. Those who are unfamiliar with the ins and outs of real estate investing and home ownership are less likely to be successful with it. In much the same way that a child whose father owns an Italian restaurant learns how to manage restaurants, homeowners of big, expensive houses learn how to manage them.

The whole premise of the show is to provide a gift to folks who are obviously unfamiliar with the taxes, bills, and accompanying opportunities to use the house as collateral without getting burned.

The humongous homes built by the extreme makeover show is really an inappropriate gift, as the new owners were really not prepared to properly manage them. As any homeowner knows, the costs of maintaining, repairing, heating, insuring, cooling, and paying the taxes on any home must be factored into the price of it; my first thought when seeing an extreme makeover home show once was, Oh my goodness; I couldn’t afford to run the AC in that house.

Of course, no one wants to tune in to see a plain old cinderblock house being built, and no huge corporations want to donate products to a boring show that no one watches. So, there you have it. There is an extreme home makeover foreclosure waiting to happen.

« Previous Page