Question : What is the difference buying a foreclosure home and a bankruptcy home?
Just like to see if the prices would be different? I know that foreclosure homes are cheap, but are the bankruptcy homes cheaper or? Whats the catch?Anything would be appreciated. Thanks.
- asked by Mrs. Pearlie
All Answers:
Answer #1
The legal process to force the sale of the home isdifferent, but the end result is the same. Boththe lender (in a foreclosure) and the bankruptcytrustee (in a bankruptcy, obviously) want twothings that are not compatible. First, they wantto sell the home as quickly as possible, whichmeans they have to sell at a discount. Second,they want to maximize the price for the home,which means they initially put the property up forsale at a price above what they are wiling toaccept.These homes eventually go cheaper thanother homes in the community. However, peopleoften "trash" homes when they go into eitherbankruptcy or foreclosure. Make sure any purchasecontract you sign has a clause that says you canback-out of the contract if a certified homeinspector says there is damage.
- answered by mcmufin
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