According to Travis Jones, Rush Properties’ former president, many homebuyers don’t understand how foreclosures work, which creates confusion and can lead to poor decisions by both debtors and buyers. Below, Travis Jones of Rush Properties gives insight on some of the most common foreclosure myths.
Q: Do foreclosed properties always need lots of repairs?
Travis Jones, Rush Properties: No, in fact, many foreclosures need only minor, inexpensive repairs, and most new homeowners like to put their personal touches on the property through these small repairs. As with any home, some foreclosures can be a bit run down, but most are in great condition.
Q: Is it true foreclosures only happen in low-income areas?
Travis Jones, Rush Properties: Not true at all. Foreclosures happen in all neighborhoods. Decreasing home values and rising interest rates affect homeowners all over the country.
Q: Are foreclosures much cheaper than homes that aren’t in foreclosure?
Travis Jones, Rush Properties: Some foreclosures might be a lot cheaper than what the previous owner paid, but compared to the prices of comparable homes in the same area, their reductions are fairly moderate.
Q: Is it risky to purchase a foreclosure?
Travis Jones, Rush Properties: It depends. Purchasing a foreclosure in cash at an auction outside a courthouse can be risky, but the majority of buyers buy bank-owned properties that are listed with other, non-foreclosed homes. The sales process is the same as for a regular home.
Q: Do foreclosures come with extra fees?
Travis Jones, Rush Properties: Closing costs need to be paid no matter what type of property is purchased. Any unpaid fees and taxes from the previous homeowner need to be cleared by the bank prior to the sale.