Potential Negatives to Buying Santa Barbara Homes in Foreclosure
Most buyers that get lured to looking only at Santa Barbara homes in foreclosure are often thinking about a cute cottage with a white picket fence, priced
well below market price, located in a good neighborhood, needing simply a little work because the unfortunate owner has fallen on hard times. Although this is a rosy picture for the investor or first-time buyer (not for the owner), the reality is often very different.
Condition of Foreclosed Homes
I have read article upon article about foreclosures the last several months as well as spent several days looking at homes in foreclosure that are on the market here in the Santa Barbara and Carpinteria areas. The condition of most of these units on average range from fair to make sure you hire a contractor.
1) Potential issues for prospective buyers on Santa Barbara homes in foreclosure is that home inspections are not always allowed. Even a home that looks at first glance in good condition might have some major issues that cost money. The price you therefore get for the home, might not compensate you for paying for all the repairs to bring the home up to your standards. Make sure your Realtor contacts the listing agent to see if this is the case. A home inspection is such an important part of a normal transaction, that if the buyer chooses not to do a home inspection, the Realtor must always get the buyer to sign off that they were advised to do so.
2) If the property is not vacant, the new owner will most likely be responsible for moving the current tenants. Be aware that this could be a tough situation if the current tenants are related to the past owner, have no where to go, etc. Frustrated and scared with their current situation, the current tenants could potentially retaliate and destroy parts of the property.
3) Those appliances that looked "oh so nice" upon writing the offer may not be there when the property is handed over to you. Often with homes in foreclosure, the owners are in a tough financial situation and will remove the appliances and whatever else is possible and try and sell these to recoup some money.
4) If something major breaks a few weeks after moving in, often you as the new owner to your home will be responsible for this. There are generally no warranties on most items. Buying a Santa Barbara home in foreclosure may not always be the best way to "get a deal". Work with a Realtor that knows the Santa Barbara market and ask questions about everything. A few items that slip through the cracks might end up costing you, the buyer, a lot of time and money.