Issues To Consider When Buying Property That Has Been Foreclosed

1. In Alabama there is a 12 month period where anyone who had a title interest or any entity that had a lien on the property when it was foreclosed can redeem the title to the property through what is called “Right of Redemption”.  This does not have to be the person who had the mortgage, and these rights can be purchased by any third party so there is no real protection should someone want to acquire the rights and redeem the property.
1. If a property is redeemed after the new purchaser has bought it, the person who bought the property would have to move out and find another home.
2. If the person who bought the property paid more for it than the “Redemption Value” of the property, they would not be refunded the difference between what they paid and the required amount to redeem the property through the Right of Redemption.
3. The Surety Bond used to induce lenders to finance foreclosed property protects the lender but not the buyer against loss if the property is redeemed.

 

2. Property that has been foreclosed often sits idle for many months prior to being placed on the market.  To save money lenders usually turn off all systems and leaves them idle until a purchaser has been found.
1. Plumbing and septic systems that have been left idle, when first reactivated and inspected, often can appear to function properly—only to quickly fail when used under normal stress of an occupied home.
2. Heating and Air Conditioning systems, when left idle, often corrode internally in the heavy humidity of the south and will function for a short period and then fail once put back in full time service.
3. Homes left without the air conditioning system running often develop mold and other wood destroying fungus once the humidity is allowed to build up over time.

 

3. The risks associated with the first 2 items can often result in thousands of dollars—either at risk for loss or at risk to be spent on costly improvements. When comparing a home that is listed and has been lived in and not left idle, often the few thousand dollars saved to buy the foreclosure instead of the lived in home is not worth the risk.

Posted on Sep 3, 2010 | 12:36 PM

Time is Running Out for Lowder’s $10,000 Credit

After the $8,000 Federal Tax Credit expired, Lowder New Homes began an unbelievable program of its own. New home buyers can receive a $10,000 credit* toward a variety of luxury upgrades, including granite countertops, stainless steel appliances, beautiful hardwood floors and more.

The program has already helped numerous people move into the home of their dreams, but time is running out for those who still want to take advantage of the savings. Contracts must be signed before September 30th, which is only a little more than a month away.

Check out any of our available new homes now or talk to us about building one just for you. Contact one of our builder representatives with any questions, or stop by a Model Home in any of our neighborhoods today!

* This offer applies to select homes and homesites only. Available only on contracts dated between July 1st and September 30th, 2010.  Homes and homesites currently under contract do not apply. Other restrictions may apply.  See a Lowder New Homes Builder Representative for details.

Posted on Aug 27, 2010 | 11:46 AM