Fifty-five percent of U.S. adults are at least somewhat likely to consider purchasing a foreclosed home, according to a recent survey. Interest is especially high among young house hunters: 66 percent of respondents under age 45 said they might buy a foreclosure.
The chief reason for this interest is the hope of finding a bargain. Already, 24 percent of existing homes for sale have had at least one price reduction. Homes that sold for over $150,000 three years ago have changed hands recently for less than $50,000.
The chief risk with seeking distressed properties is that they may be in bad physical condition, especially if they haven’t been occupied for some time. Therefore, you shouldn’t buy before taking a good look at the property. Spend a few hundred dollars to hire a home inspector so you’ll have an idea of how much time, effort, and money will be involved to fix up the home after you’ve bought it.
