What are Hidden Foreclosures?
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Due to the turn of current events, amazing quality housing is available as foreclosure purchases. There are pre-owned beach front property, luxury high-rises and adorable Craftsman homes that became unaffordable to the previous owner, so the bank had to assume ownership of the property. Aside from preowned homes, there are tons of brand-spanking, never-been-lived-in homes that are also under bank ownership. These jewels are typically called “hidden foreclosures.”
What kind of homes are hidden foreclosures?
Hidden foreclosures are made up of new mid- and upscale homes that were freshly built and the construction-loan period expired without those homes being purchased. Like other foreclosed properties, these new homes are also now real estate owned (REO) properties.
Unlike the other homes, they are harder to find because no one associated with the sale of these properties wants to promote them or call them foreclosed homes. Hidden foreclosures are called such because the lack of promotion makes them less likely to appear on national multiple listing sites.
How do sales of hidden foreclosures work?
Like other bank owned properties, professional real estate agents will be in charge of handling the sales deal. That sales agent will be less then likely to identify the property as foreclosed.
If a real estate agent takes you to a brand new home that was completed in a couple years prior to the show date and has never been lived in, you may have just found yourself a hidden foreclosure.
If you find a hidden foreclosure, make sure you follow all the necessary steps for ensuring you are going to buy the property safely. Make sure to hire a home inspector so they can assure you of the quality of the home and do your research of comparable homes to ensure that you get the best value for your money.
