Here's a  very dangerous trap to avoid as you find foreclosures.

Shoddy construction and structural problems in some of  the newer foreclosed properties. 

Beware, some distressed owners are bailing out because they have poorly built houses and can't get the problems fixed by their builders.

Some of them see foreclosure as their only way of escape from a nightmare of crashing ceilings, mold, flooding, and etc.

Sometimes investors get the idea  distressed owners are leaving their homes because of mortgages woes, and that's true in many cases.

But because some of these newer houses were hastily built and are not quite as sturdy as they may  appear, distressed owners are taking the foreclosure route in spite of the pain.

So  how can real estate investors avoid getting stuck?

Here are 3 tips:

1. Investigate the builder

Find out if the builder has complaints.  His reputation will speak volumes.  All builders may have an isolated dissatisfied customer, but if there is a lot of buzz of discontent, you can bet his houses have many problems.  Leave them alone.

2. Check out griping homeowner sites online.

Homeowners Against Deficient Dwellings,  http://www.hadd.com is a goldmine of information as is such independent sites as http://www.georgiamoldhome.com

Since you can’t go to the court system for records because many homeowners have signed contracts where they have to arbitrate and   can’t sue their builders, you need to get your information straight. 

Distressed owners will often tell it all online.  They’re not shy about the details. 

3. Ask the distressed owner and the neighbors

Last, but not least, get it directly  from the homeowners.

Ask them why they are going into foreclosure if you suspect the problem is not with the mortgage.  Ask them directly if there was a building problem. 

Many people will willing unload on open ears.  You’ll get reams of information.

Foreclosures are terrific deals in many cases.  Just make sure you don’t become the next distressed owner by investing in a property  with structural problems.  

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