Finding decent accommodation can be a real headache. That’s why it is necessary to be able to recognize good real estate deals. It is precisely in this context that the purchase of condemned homes takes place. It is a great opportunity to acquire real estate in good standing. Therefore, it is important to know how to buy a condemned home.
The processes for buying a condemned home
For a real estate purchase, selecting a foreclosed home can be a good plan. It is thus possible to buy a foreclosed property following two processes.
Proceed by amicable sale
The amicable sale requires the execution of the agreement of the execution judge. It is the judge who establishes the price of the property. This is a lower minimum sale price at which the property cannot be sold during the orientation hearing. The sale is then supervised by a notary.
The debtor entered into trials to find a buyer on its own. It is usually subject to delay and is therefore in a hurry. It will be easy for the potential buyer to negotiate. If the debtor does not find a buyer within the deadline, the judge proceeds to the forced sale of the property (auction).
Proceed by auction or forced sale
This is the execution judge who orders the sale of a house seized in an orientation test. The price is set on the basis of various parameters, such as the size of the debt, the qualities of the property, etc. It is clearly below the market price. Therefore, if there is little competition during the auction, it is possible to get a good deal. In the case of a public auction, you must advertise at least one month before the public.
If no one wants to bid, it is the creditors who become the owners of the property for the amount of the debts. However, the debtor can act before the judge if this price is obviously undervalued. The tenderer must be represented by a lawyer. Creditors are paid on the price of the last offer or have an opportunity once the appeal deadlines expire.
The risks involved in buying a condemned home
Buying foreclosed real property can be a very exciting financial opportunity. However, this purchase is framed with very rigid rules that can sometimes hold unpleasant surprises.
There is no stopping to cancel the sale. In fact, an applicable sale may be invalid from the judge. It should be noted that anyone who wants to buy a foreclosed home should do so within 10 days of auction training.
On the other hand, when the property was occupied, important residents sometimes refuse to leave the premises. From there, before purchasing, it is best to ensure that the accommodation is empty or that your resident is ready to vacate the facility.
It also happens that the debtor has deliberately damaged his property with the seizure procedure by which he is impacted. The buyer cannot contact the seller in the event of a severe movable disability. To protect yourself as much as possible, it is important to visit the property before buying, accompanied by building professionals. A renewal is then often necessary to make the condemned house more habitable.