Foreclosures

The number of foreclosures on the market is rising as a result of the mortgage crisis.  It is important to be extra careful when purchasing a home that has been foreclosed on and that it is fully and carefully inspected. The disclosure rules vary from state to state. In New York, a majority of sellers refuse to disclose at all, and forfeit a $500 civil penalty at closing. Forclosure inspections may only entail a four-point inspection, as opposed to a full-blown one. Seller’s inspections may also fail to hit the mark, or represent the dwelling at a point long before a qualified buyer comes along. These inspections should be viewed as a point of reference, and not as representing the condition of the property in its current state.