Brooklyn Foreclosure - Potential Red Flags?

[Isadore Nelson]

I am strongly considering a foreclosure property located in Brooklyn. It has been on the market for three months, with the price reduced multiple times from $550,000 to the current $375,000. The property is being sold by the bank. I understand that some prospective buyers have gotten under contract but later backed out. According to the brokerage and agent, these individuals either weren’t serious or claimed they didn’t realize the property was occupied, even though it was clearly stated in the listing.

I'm not particularly concerned about the property's condition or the eviction process, as I've already secured some level of cooperation and have basic access to the basement. Additionally, I am financially prepared to sustain hard money loan payments for up to two years, which is realistic for resolving occupancy issues in NYC. The property is a duplex with an ARV (after repair value) of $700,000, making it a strong deal.

However, I want to ensure I’m not overlooking any potential red flags. While I understand that other liens are typically foreclosed out, could I be missing something? Additionally, the repeated price reductions might signal broader investor hesitation, hidden repair needs, or structural issues. Could there be something I’m not aware of that’s keeping other buyers away despite the attractive pricing?