Are foreclosures safe to buy now?
If you haven’t seen the news lately about what is happening with foreclosures you should know that there have been some developments recently that make buying a foreclosed or bank-owned property a riskier situation. Apparently at least 3 of the larger lenders have had to withdraw hundreds of thousands of foreclosure filings due to improper paperwork and in some cases outright fraud and because of this one of the big title companies is not writing title insurance for certain foreclosure deals involving 2 of these lenders.
My recommendation, until this gets sorted out fully, is that if you do proceed with purchasing a foreclosed property you should hire an attorney to review all of the paperwork related to the foreclosure to make sure that you won’t run into any problems with the deal or at some point in the future.