Gwinnett REO Contractors Soar As Burned Foreclosure Buyers Get Wise...
REO Contractors Atlanta Gwinnett Buckhead Cumming
Purchasers of foreclosed homes are winding up losing their investments, ending up in bankruptcy courts, moving back in with relatives, living in hotels or worse. These disheartened individuals and families are asking themselves "What went wrong?"
At a time when our economy seems to be in a state of recovery, as many are returning to work and many more seem to be getting close to being back on their feet again - why are so many finding themselves back where they were not so long ago?
It turns out that the foreclosure homes they purchased at what looked like incredible discounts at the time - turned out to be not so great a deal today. Unless these foreclosure homes went through "REO Companies," then the homes never went through a legitimate process of being refurbished or repared the correct way. These homes were originally built with all builder's grade materials, they were sloppily thrown together in a rush by unskilled, undocumented labor during an overly extended housing boom. They were then neglected by first time homeowners who never legitimately qualified for their mortgage to begin with. These homes were then occupied for a couple of more years by abusive, resentful individuals who knew they were soon losing the home through foreclosure. The houses then sat empty for a year or two more, waiting to be off loaded onto unsuspecting homebuyers looking for a good deal on a foreclosure property.
When the foreclosure purchasers bought them, the houses were only discounted from their original sales price which only covered the recent devaluation in real estate values. In fact, the houses continue to dive in value by significant amounts and are expected do so for quite some time. The extremely costly repairs were never performed which are vital to the home's habitability and the new home buyers are finding that out the hard way.
Included in these deficiencies are roofs that need to be replaced, mold issues, defective siding and window issues, worn out or missing HVAC units, pest infestations, diving neighborhood conditions and many more conditions. The costs of these repairs more often than not far exceed a total price of over $50,000. Adding insult to injury are the facts that most of these problems must be remedied immediately before the property is occupied, plus the fact that these problems were NEVER budgeted in the buyers' purchase price of the house..
So, what exactly did go wrong and how can it be prevented? The answer is quite simple and extremely safe as well. If those seeking great savings in their purchasing of a home by targeting foreclosures, these buyers simply need to learn as much as they can about the "REO" companies in their desired area and select their next purchase from homes that have been inspected, repaired, and documented by an well established REO company with a solid reputation.
It's important to keep in mind that ANY company can claim to be an REO company and anyone selling a property can claim that a house has been inspected and repaired by an REO company - but that's simply not good enough. Home buyers MUST do their homework in finding an REO company they can trust, and internet search engines are a great place to start. It's vitally important for those looking to buy a home to select ONLY homes that have been repaired or renovated correctly by reputable REO companies. Homebuyers may try to request something from the REO company stating that the home is in decent working condition. It's not imperative that the REO company provide a warranty or extended warranty. A simple written statement on their company letterhead that the home is in working condition. In fact, having they REO company do a professional written inspection on the property might be the safest way to go. You have to have the home inspected anyway, so why not have the company that made the repairs do the inspection. Imagine the recouse leverage that will exist at that point.
In short, if home buyers would have purchased only through reputable REO companies - these home buyers would not be in the trouble they're in today!
Tips for Buying Distressed or Foreclosed Homes
Buyers Of Foreclosures In Atlanta, North Georgia Need To Check For These Common Problems Before Purchasing:
To many unknowledgeable home buyers and investors, the Atlanta bank foreclosures may seem like a steal. Sure, they may be “fixer-uppers” but they are selling for thousands of dollars below other homes in the neighborhood. Brion Grant, past president of the American Society of Home Inspectors, in a recent interview stated some of these foreclosed homes may conceal some rather unpleasant surprises from leaky pipes in the walls to wild animals taking up refuge in the attic.
Remember, foreclosed homes in Atlanta are sold “as is!”
These microscopic organisms thrive on moisture. In muggy Southern climates, mold can inhabit any home. But in a vacant, uncared for home, it can spread like wildfire. In some cases, a slow drip of water inside a wall can cause a massive mold infestation and damage will be unseen by the untrained eye. That’s why home inspectors are so careful to check for leaks, small holes and possible water seepage. In Atlanta foreclosures, mold is the number one issue.
VANDALISM & BREAK-INS
A vacant foreclosure in Atlanta, GA is an invitation for vandals to help themselves to things such as air conditioner units, appliances, even faucets and light fixtures. Copper piping and electrical wiring are desirable commodities. Anything that can be resold is up for grabs.
Property damage is often visible.
Sometimes the previous homeowner has destroyed the home in anger and frustration. Other times, neighborhood kids will have smashed in windows or used the home for parties. Most Atlanta foreclosures have had their utilities shut off, thus the alarm system is inoperable. Vagrants will take up residence to get out of the weather.
A rarity is the homeowner who has left the home in pristine condition, even vacuuming the floors on their way out. If an Atlanta bank foreclosure stays on the market long, more than likely it won’t remain that way.
Homeowners going through foreclosure are strapped for cash. Often times, they have removed anything of value. Any upgrades added to the property will now be gone. In many cases, so will appliances, ceiling fans, window dressings, even laminate wood or tile flooring and sound systems have been known to disappear before the key is handed over to the bank. The mentality of the person being foreclosed on is that they paid for them, why should they leave it all for someone else?
Home inspectors report toilets, spa tubs and kitchen cabinets have been ripped out of Atlanta foreclosures. The former owner may also leave behind trash and junk they didn’t want. Beat up furniture, rusty grills, car parts, and smelly garbage in the pantry can greet the first potential buyer or inspector. The new buyer will have to pick up the costs of removal and replacement.
Vagrants are not the only ones who seek shelter. A home void of human smells and sounds can be a beacon to snakes, raccoons, rats and even large mammals such as panthers, wild boars or feral cats. The American Society of Home Inspectors have heard every horror story imaginable. It is quite normal to find hives of bees or swarms of bats in the attic. Skunks can inhabit the ventilation system and squirrels the air ducts.
Insects infestation is the most common. Fleas nestle in the carpet in such great numbers that they can turn your legs black when you walk across the room. Fire ants and termites may be rampant. Cockroaches may have taken over in the kitchen and bath looking for water sources. Moths can eat any drapes, carpeting, or even wall paper.
If a home owner is struggling to make their monthly mortgage payments they are not likely to shell out money on HVAC maintenance, or roof repair or replacement. More often than not, repairs of any type stopped months before the payments did. Even simple things such as changing HVAC filters go by the wayside. Gutters have not been cleaned and debris has not been cleared off the roof. It is possible such neglect will mean thousands of dollars in needed repairs.
It is possible the lending institution has already made some clean-up and repairs, but many do not have the time or the crew to do so. The Atlanta home foreclosure market is growing steadily and banks may have dozens foreclosures on their hands. The best option for the potential metro Atlanta foreclosure buyer is to invest in a professional home inspector who will thoroughly examine every nook and cranny of the home. A professional home inspection may not eliminate every surprise, but it can give the Atlanta home foreclosure buyer a better idea of how much money they will need to set aside for repairs and clean-up.
The key to determining whether the foreclosure in Atlanta, GA your considering purchasing is a “money pit” or a “real steal” is a quality home inspection.
Don’t settle for a cheap inspector when buying a foreclosure in Atlanta, GA or your biggest purchase could turn into your worst nightmare.