Should I buy a foreclosure?

My husband and I are looking to buy our first home. We currently live in Orange County, California which is very expensive. Houses in our city start at around 500K. There are a few cities about 20 to 30 miles away that have nice houses starting at 150K, but most of them are short sales or bank owned. My question is, is it safe to buy a foreclosed or short sale house, if any house, in an area like this? We went to see a few open houses this weekend, and some streets had every other house with a for sale sign on it. These houses were built around 2005 and most previously sold for several hundred thousand dollars more (ie. current short sale at 175K last sold for 400K). Could these brand new neighborhoods never recover from the housing market crash? I want to make sure that our investment is good. Thanks in advance 🙂

3 responses for Should I buy a foreclosure?

  1. Dave says:

    Stay away from short sales unless you’re prepared for long waits and a high percentage of "fall-throughs" on offers. Your realtor should be telling you that. It’s OK to buy an REO property (bank-owned) but be sure to have it inspected carefully. Also consider carefully the stability of the neighborhood.

  2. someone says:

    The short sale or foreclosure does not mean the house in poorly constructed just means the owner took a mortgage they could not afford.
    A home is never an investment but it is where you intend to live
    You buy a home because it fits your needs. If you are looking to sell this house in a year or two then NO you will not make a profit

  3. Bill says:

    I suggest you stay away from short sale homes as most of the time there are problems and long delays. Foreclosures are alright but check out the neighborhood very carefully to make sure that it meets your standards and that the majority of homes are not subject to foreclosure. Secure the services of a good realtor to make sure that the home you choose is a good value. Good Luck

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