As an architect there are many things I would like to learn in college and real estate is one of them. Buying and selling houses is a very wild world, only suitable for the brave, as there is a lot of money and corruption involved, even in houses and small lots.
Foreclosed houses / bank auctions are in fashion today because apparently they are cheaper than those located in the same neighborhood and have the same characteristics.
The big difference in price is that you are actually buying all the above problems that that property brings. For example. Many of those houses are those that the bank repossesses when people stop paying their mortgage, or are involved in lawsuits (such as inheritances and divorces).
In many cases the properties are still inhabited or invaded. It’s a big problem to get people out, especially when they have a certain seniority.
That is why at the time of purchase you should investigate that house in every sense, especially because since they are abandoned houses, the water and electricity services, for example, have not been paid in years and you must catch up with the debt.
You should also hire someone to check the house itself, in what condition it is, especially the structure and facilities. It is very likely that you will have to invest a lot of money in it.
Another important point is that if you want to buy it on credit, your bank or institution will not lend you the money.
In a nutshell:
-Inspect the house physically. That it is not still inhabited illegally and is in good condition to live there.
-You must investigate that whoever sells you the house has the papers in their name. Do not buy any house that does not have this requirement.
-That she is not involved in any lawsuit. the authority can take your house from you at any moment and your investment will probably be lost.
-That you have no debts of any kind, including payment of maintenance fees. This is quite an issue, especially if payments are due to the municipality.
That’s just to say a few examples.
It is important to note that this type of house never recovers its value to 100%, even when you resell it, the price will be significantly punished.
You should always consult with a lawyer and if you are going to obtain a loan, rely on the previous experience of who grants you the loan, since they are the first to want to make sure that your investment is supported (we will talk about this later).