If you’re like most people buying a condo or loft in DTLA, you know that buying a foreclosure can be a great way to save a little cash and get your dream home – but how does a foreclosure sale work?
Here’s what you need to know.
How Does a Foreclosure Sale Work?
Foreclosures aren’t as common now as they were during the real estate crisis a decade ago, but they still exist. About 1 in every 13,000 homes ends up in foreclosure – and some of them are condos in Downtown LA.
Here’s the deal: In a foreclosure, the lender actually owns the house. Usually, banks want to unload homes as quickly – and as painlessly – as possible. In many cases, they just want to recoup their money.
But what about the risks?
Risks of Buying a Foreclosure
You buy a foreclosed condo as-is. That means that the interior might not be in the greatest shape – and that the lender is unlikely to do anything about it before you buy. It’s usually up to the buyer to make repairs, improvements and upgrades.
If you’re specifically looking for foreclosures, you can ask your real estate agent to find them for you. You might also see them listed online as “bank owned” or “REO” (REO stands for real estate owned).
A word of caution if you’re buying a foreclosure: The previous owner didn’t have the money to make his or her mortgage payments, so there may be issues in the home that require pretty costly repairs. (Owners typically have to prioritize where their cash goes, so repairs probably weren’t at the top of the list.)
What to Ask About Foreclosures
You need to ask your DTLA Realtor® these questions:
- How long was the foreclosure vacant?
- Can you refer me to a home inspector?
- Can we add any contingencies to my offer?
Are You Buying a Loft or Condo for Sale in DTLA?
Call us at 213-254-7626 or get in touch with us online to start exploring your options when you want to buy a loft or condo in downtown Los Angeles.
While you’re here, check out our:
- DTLA Arts District lofts for sale
- Historic Core lofts for sale
- DTLA Little Tokyo lofts for sale
- Bunker Hill lofts for sale
- City West lofts for sale
- South Park lofts for sale
- Fashion District lofts for sale
- Financial District lofts for sale