Is a Foreclosure REALLY a Deal? - The Value of Knowing What You're Getting

So the question becomes - whatever happened to the disclosure statement? I don't know about you, but I've shown so many "as-is" properties, that I feel like I'm the blind leading the blind. I can't remember the last time I've shown a home that was still owner occupied, much less not a bank owned home.

Isn't there something to be said for having few or NO surprises that first year or so after you buy a home? Sure, a home inspector may find the "major" problems with a home - BUT he/she might NOT! Wouldn't it be great if the previous owner answered a detailed list of questions about the home they actually lived in, so that you would know what to expect? OH WAIT ! I remember that - it was a DISCLOSURE STATEMENT!

So what if the home isn't "brand new perfect?" Chances are, you're not buying it at a "brand new price". But there is value in knowing what to expect. For instance, knowing that the roof is only 3 years old; or knowing that the water heater was just replaced last spring; and that light brown mystery stain on the celing in the garage - it's from a paint explosion last summer, not a water leak. Not to mention the savings of continuing a termite bond vs. having to start a new one!

So, are foreclosures REALLY a great deal? Sure, some of them are - and if you have a super-awesome inspector that actually IS an expert in EVERY aspect of home construction and mechanicals - then you probably won't go into the sale blind. But having to sign an extra 35 pages of addendums because the bank doesn't want you suing them over the slightest chance there is "toxic mold" or some other environmental hazard in the home must leave you with at least a raised eyebrow, right?

The bank doesn't have to answer to you about the home. They didn't live there, after all. But, the previous owner of a home DOES have to answer to the disclosure statement. There is protection in that for you (or your client), the buyer. AND, if you see something on the disclosure that bothers you - negotiate the price - or have the seller fix it! It's a win-win situation!

So, think hard. What matters to you? Saving a few bucks a month on your mortgage - or getting something you expect?