Buying Phoenix Arizona Foreclosures? Avoid the Pitfalls
Buying Phoenix Arizona foreclosures can be very profitable for realty businesses and realtors, since several houses and properties are sold at 20% to 50% discount. It may also be ideal for first-time homeowners who want to find their dream home at a bargain on the MLS listings, and can be a great investment for those who are looking to grow their savings. There are a variety of foreclosure listings in Phoenix to choose from, covering the range of stand-alone homes, stylish apartments, and luxury condominiums in the ideal communities of Phoenix or the sprawling terrains of Tucson and Mesa Arizona.
But buying Phoenix Arizona foreclosures, whether new homes or condos, is not without disadvantages. Buyers have to do due diligence, because buying bank owned houses or condos for sale does not guarantee that the property is free of legal obligations. This is a common mistake of first-time foreclosure buyers – they assume that the condo or house they are buying is free from liens, which, by the way, are the legal claims of one person upon the property of another person. Examples of these are property taxes. If the original homeowner was not able to pay the loan which led to the foreclosure of their property, chances are their property taxes are also unpaid. Since most foreclosed properties are sold on “as is” basis, the bank would effectively shift the tax obligation to the buyer. Ignorance of this possibility does not excuse bank foreclosure buyers from legally assuming this obligation.
Phoenix Arizona Foreclosures – Pitfalls to Avoid
To avoid the hassle of assuming another person’s legal obligations, we suggest buyers visit the county courthouse to check if the “ideal home” they’re interested in is free of any legal liabilities before bidding on Phoenix AZ foreclosure auctions. This can be done by searching for the property title. Any liens attached to the property, such as taxes or claims, will appear. Taking this step saves the potential buyer from spending hard-earned money on something they need not pay for. Or if they really want the Phoenix Arizona foreclosures for sale, then they know what they would be dealing with.
Then there’s the issue of tenants. If buyers consider the property as a home and want to move in immediately, checking if it is a rental property is very important. Visit the property and see if it is rented. This way, dealing with unwanted tenants, no matter how prompt in payments, would be avoided. However, if the buyer considers the property as an investment, then its rented condition may be considered a bonus.
Following these steps assures buyers that they have made an intelligent bid for the Phoenix Arizona foreclosures they want.