This is Joan Kang, the one who’ll manage this site. In case you have concerns or questions, feel free to contact me. Enjoy my first post
For many Malaysian home buyers, the real goal for every house hunt is not only to find the home they’ve always dreamed of. It’s also about buying a home or Malaysia property that will suit the needs of his family and more importantly, will suit whatever budget the family has for mortgage. Home buying is hardly ever cheap, that is why short sales are a very popular choice among homebuyers on a budget.
A short sale in real estate refers to selling a home that is bound for foreclosure. And while that does not sound too enticing, there are tons of homebuyers who actually scramble after foreclosure homes for sale mainly because the houses on short sale are downright cheap. The Malaysian home owners need to sell them as quickly as possible in order for them to avoid foreclosure and so they allow for their homes to sell below its market value.
Reasons Why You Should Not Buy A Foreclosure Home
But should you really buy a house on foreclosure? Doesn’t it come with actual risks? Here are 5 reasons why you should probably not buy a foreclosure home:
- Foreclosure homes are more likely to be in a bad shape. Homes have gone into foreclosure primarily because its homeowners have gotten into a financial rut that prevented them from affording their mortgage fees. And only logically, we should expect that if they cannot afford their mortgage fees, they would be less than likely to even afford a single repair on the house. And the fact that the sale is short and quick, there would be no time to make actual and significant works on the house.
- There might be more underlying problems on the house. Because the sale is supposed to be quick and the house being sold as is, there might not be time to get the house inspected. And because the Malaysian homeowner is in haste in trying to get the house sold, they may not fully disclose the real condition of the house. After all, they are trying to sell it as quickly as possible.
- They may be selling the house without the mortgage lenders consent. Homeowners are bound by contract to obtain permission from the mortgage company to sell their house in the event of a looming foreclosure. However, not all homeowners get that ‘privilege’. Unless they prove that they truly are in a ‘hardship’ situation, that permission might be hard to come by. And should they proceed with the sale, and you end up buying the house, you might have to pay more for assuming the previous Malaysian homeowner’s existing and obviously indebted mortgage loan.
- The closing costs might be higher. No lender is ever happy with a short sale, and you might take the blunt of this ‘unhappiness’. Lenders hardly offer anything for short sale buyers as far as closing costs are concerned so you might have to pay that yourself; and with all the complexities – paper wise – of a foreclosure sale, you should end up paying for ore.
- Because it is complicated and it has tons of people and other things involved, you might have to wait longer than expected before the house becomes yours. The wait can be indefinite, boring and scary.
Get a foreclosure home, for all its worth, only if you are willing to put up with these risks.