Moreno Valley, CA has been hit hard with bank repossessed homes the last few years. There are a large number of foreclosure properties available in most neighborhoods at all price ranges. Investors and first time home buyers have been taking advantage of opportunities to purchase Moreno Valley foreclosed homes because they offer opportunities to buy properties at cheap prices. They recognize that these opportunities are not going to last forever and have been flocking to Moreno Valley.
What to Watch Out For?
When you purchase Moreno Valley foreclosed homes, you have the opportunity to buy a property below market value with built in equity. However, there are some things you need to know and will want to watch out for such as:
- Bank repossessed homes are always sold in an “as is” condition. That is why it is important to view the home in person and see what you are getting. Don’t rely on a brochure or list of foreclosed houses you see on the Internet.
- Many of the homes are in poor condition because the former owners did not maintain the properties. Banks are not maintaining them either because they have too much foreclosure inventory. It is not uncommon to see swimming pools with stagnant water breeding mosquitoes. Some homes have been stripped by former owners of entire kitchens, including granite countertops and appliances, cupboards and hardware. At least you can see cosmetic damages, but you cannot tell what is going on with the home systems unless you have a professional home inspection or you are a contractor. So you should have the home inspected. Cosmetic repairs are not as costly as having to replace roofs, plumbing and air conditioning and heating systems.
- Banks are not required by law to give you a property transfer disclosure statement. When you buy a resale home from an individual owner, they are required to disclose material information about any defects and whether or not home systems are working. So it is up to you to do all your own investigations.
- When you purchase foreclosed homes at foreclosure property auctions, you need to pay cash. Also, you cannot get title insurance, and you may not be able to inspect the home. Foreclosure auction properties are riskier investments than purchasing bank owned REO properties or pre-foreclosure short sales. With a foreclosure property purchased at an auction, you may get stuck with liens or having to evict the former owner or tenant.
Right now it’s a buyer’s market in Moreno Valley. There are numerous opportunities to purchase bank repossessed homes. You should work with a local Realtor to find the properties because it will save you time. The Realtor is knowledgeable about the foreclosure inventory in the area, and can help you find a property that meets your needs.