In 2009 there were over 2.8 million properties in the United States that were foreclosed. By 2009, one in every 45 homeowners received foreclosure notices. Those properties were considered distressed properties. Distressed means these homes sold as foreclosures or short sales.
A short sale is basically, a pre-foreclosure. The term "short" means the bank is willing to be short the money owed on the property, however it can be a very long process. The home is usually in better condition than a foreclosure and the seller usually can provide a history of the property, unlike foreclosures. The similarity between a foreclosure an short sale is the property is usually sold "as-is".
There are some buyers that purchase a foreclosed home in the Poconos and they get a steal of a deal. However, there are also potential pitfalls.
The Advantages to buying a foreclosed home in the Poconos is that most banks are motivated to get a fast sale, which tends to lead to the home being sold below market value. So many homeowners are upside-down on their mortgages and owe more than the home is worth. Banks want to get as much money back as they can, so there is more potential for bargains.
A Foreclosed home in the Poconos, in a good neighborhood with high resale values can be a good investment. Sometimes banks will give a buyer closing cost concessions. The buyer will get a free & clear title, and the buyer will not take on any liens associated with the property.
The disadvantages of buying a foreclosed home is the condition of the home. Homeowners that are loosing the property due to foreclosures are less likely to take care of it. They just do not have the money needed to properly take care of the home. Then the home goes into foreclosure, already in need of repairs, the banks will not do the needed repairs & the property will be sold "as-is".
Getting a mortgage depending on the home and repairs needed can be hard. Also the other disadvantage is that the bank cannot provide a complete history of the property, condition, any previous problems or repairs.
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