When buying a house, a seller is legally required to tell you about defects and problems that he or she knows about relating to the house that is for sale. This is done by the seller filling out a form that is called a full-disclosure form, and this form is very helpful for buyers because it helps them understand potential problems of the house before they put in an offer. If you decide to buy a foreclosed house, you will not receive a full-disclosure form, though, and here are a couple things to know about this.
Full-disclosure forms are not required for foreclosures
When a bank takes back a person's house for lack of payment, the bank will sell the house as a foreclosed home. When you see foreclosed homes for sale, you can assume these homes are being sold as-is. An as-is house does not require a full-disclosure of problems, which means you will have no idea what is wrong with the house if you buy it.
Your agent might be able to obtain a recent disclosure form
While you will not be able to get a full-disclosure form from the bank that is selling the house, there is a chance you might be able to get a recent disclosure form on this particular house. To get a recent disclosure, talk to your real estate agent to find out if the home switched owners within the last five years. If it did, your agent might be able to locate the disclosure form the last owner created when selling the house. This may not give you a current status of the house, but it would reveal any problems the house had the last time it sold.
Steps you can take to find out the condition of the home before buying it
There are also some steps you could take to find out the condition of the house before purchasing it, and the best option is to get the home inspected. There are times when banks will allow this, but there are other times when banks will not let anyone enter the foreclosed home. If you, or an inspector, are not allowed to enter the home before buying it, you will be taking a huge risk if you follow through with purchasing the property.
Buying a house that is foreclosed can be a good option if the house is priced right and does not have major damage. If you have questions about this, hire a real estate agent for help. Contact a company like Naples Real Estate Finder to learn more.