Purchasing a Foreclosure property

[Tasha Jones]

Hey BP fam, I have a couple of questions about buying foreclosure properties. I see a couple of them in my area are due to auction off next month and I wanted to know the pros and cons of buying foreclosure properties.. Any advice would help thanks..

[Jon K.]

The only pro is that you may get a good deal.

The cons are you are competing with huge institutional buyers, you can't see the inside of the property before you buy it, it can take a very long time for the whole thing to ratify if you are the winning bidder and that entire time (depending on the terms of the auction) you are potentially paying interest on the total bid amount as well as responsible for property taxes. Also if the former owners are still living there then you have to evict them once you own the place.