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.  

 

Read More

Popularity: 26% [?]

Related Websites

• Sarasota Foreclosures Prompt Bargain-Hungry House Hunters To Repair Credit Fast! Sarasota foreclosures attract hungry house hunters, who desperately are working to improve their credit and grab the keys to their new homes. Today, a lady named Shaunna desperately wants to buy a home along with her husband. Before I get to Shaunna's question about secret #1, check out this short......
• 10 Reasons Why Investing in Gold is a Bad Idea The majority of the investing world, like countless times throughout history, has once again found itself spellbound by gold's luster and I'm here to tell you why I think gold is a bad investment. I'm feeling another black sheep moment coming on. Truth is, gold has had a heck......
• Choosing a Great Investment Manager You know that past returns are not indicators of future performance, right? You've read that on a billion mutual prospectuses. Nonetheless people tend to use their past returns as their primary motivation for selecting new ventures and speculations. This is probably a combination of everyday human nature, the historical charts......
• How Is To Create Really Good Source Of Information. Look through popular sites, look what structure is pleasant to you. It is not necessary to copy of course it’s (structure) in the pure state. But on structure you can quite borrow the most interesting ideas. When I started creation of the site, I didn't search in network of the......
• How To Find A Green Builder Or Contractor In Your Area. Yesterday, I got an email from a reader named Lisa who asked: "I am going to be adding an addition to my house in the next year or so and I wanted to look into green contractors/architects to help me plan the new addition. I live in NJ and I......