Dos and Don’ts of Buying a Brooklyn Home in Foreclosure

Whether you’re looking for an investment property or a home for your family, a foreclosure might be a good deal for you. However, buying a foreclosure is different from buying a home from a seller and requires different considerations.

Before you sign a contract, consider what you should and should not do when buying a Brooklyn home in foreclosure.

  • DO consider the cost of repairs. Foreclosures are sold “as is.” That means the bank will not make any repairs to the Brooklyn home in foreclosure before closing, so you will be responsible for them. For example, if the home needs a new roof, make sure you have enough money to pay for it.
  • DO get a home inspection. In a traditional home sale, the seller is required to tell you about any defects or problems they’ve had with the home. However, a bank does not have to supply a disclosure statement because they have not lived in the house and do not have any information about defects.  Make sure you hire a professional home inspector to check the structural integrity and condition of the home.
  • DO be prepared to wait. Buying a foreclosure usually takes longer than buying through a traditional sale. You will have to look through and sign stacks of paperwork. In some states, banks are required to go through the court system to sell a foreclosure which can take time.
  • DON’T buy a home just because the price is low. Banks like to sell their foreclosures as close to market value as possible. If the price is exceptionally low, there’s a reason why. Make sure you know it. Home repairs can easily add up, turning what you thought was a bargain into a money trap.
  • DON’T expect to flip the home for a quick profit. Despite what the get-rich-quick-buying-foreclosures crowd tells you, foreclosures don’t automatically mean you’re getting a steal, nor can you always quickly sell them. Buy a foreclosure because it’s an affordable home for you and your family, not as a way to build an overnight fortune.

When you take your time and do your homework, buying a Brooklyn home in foreclosure can be a great bargain.  I can help you find well-priced foreclosures.  Call me today at (718)253-9600 ext 206 or email me at [email protected].

Charles D’Alessandro

[email protected]
tel 718 253-9600
fax 718 253-9573

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3 Responses to “Dos and Don’ts of Buying a Brooklyn Home in Foreclosure”

  1. I read similar article also named Investing in Pre-foreclosure makes more sense, and it was completely different. Personally, I agree with Brooklyn Real Estate Blog more, because this article makes a little bit more sense for me

  2. Hipolito M. Wiseman says:

    Just read the Dos and Don’ts of Buying a Brooklyn Home in Foreclosure, this is a very nice and informative real estate blog!!

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