Should You Buy A Distressed Home?
You certainly can but you need to be very careful. Always consult a real estate agent who is an expert with foreclosures and short sales. One of the most important thing to have done is a thorough inspection. There can be a lot of hidden costs involved when it comes to repairs and damage and you need to make sure the inspector checks EVERYTHING.
The other very important thing is whether there are any title issues. Many will use the title company that the bank recommends because they will pay for your title insurance. I am a big believer in “you get what you pay for.” The title companies that these banks use are sweat shops. They have so many transactions going on that they cannot keep up. I highly recommend using an attorney to do the whole transaction. At the very least if you are going to use the banks title company, higher an attorney to represent you because the title company the banks suggest certainly isn’t looking out for your best interest.
In South Florida and especially Fort Lauderdale, you will see 2 title companies on a lot of deals. I will not name names but be careful.
The property can also be vandalized in the process of the loan or while you are waiting for the bank to approve the short sale. I have seen air conditioning units stolen and many other items. There is only so much you can do about this. It’s almost out of your control.