![\"repo](\"http:\/\/www.blisstree.com\/files\/2009\/12\/repohome.jpg\")
<\/a> <\/p>\nThe biggest issue with repo homes is that most banks turn off the utilities. Then, most of those same banks don\u2019t winterize the homes. So, you have a house with a damp basement, no sump pump running and\u2026oops. Guess they didn\u2019t drain the pipes. The water in them expanded and they burst. Someone\u2019s going to be in for a nasty surprise when they turn the utilities back on. Maybe they\u2019ll notice the broken pipes when they rip the walls down to the studs to get rid of the black mold<\/a> spreading through the home because of the water in the basement and it won\u2019t be too much of a problem. <\/p>\n You think I\u2019m exaggerating, right? I didn\u2019t take a picture of the house I was just in. I wish I would have. At first glance, it looked like there was black flocked wallpaper all over the house. Literally all over. Under the stairs. Up the walls. Across the ceilings. Fuzzy, fuzzy, black stuff. And the smell of the mold was enough to knock you out. It was such a cute little house in a great neighborhood, but anyone buying it would have to call in a team of specialists to tear it down to the four outer walls and then hope the mold didn\u2019t come back when they redid it all. Damp basement, no winterization and the sump pump was off. <\/p>\n I have no idea why they don\u2019t properly winterize and why they don\u2019t do something to keep a sump pump running. There have to be some sort of battery powered pumps or something out there. But they don\u2019t. So, a $300,000 house is suddenly only worth the lot it is sitting on and the bank will accept an offer less than the value of the lot because they know no one except an experienced flipper with his or her own crew wants to deal with tearing down the mold filled house. <\/p>\n (Some banks do care about the properties and do keep the sump pump running or at least winterize the pipes. HUD always winterizes homes so, as long as the basement is dry, they are usually in good shape.)<\/p>\n Next, you\u2019ll want to take a good look at the overall condition of the home. If it is an older house, it often needs resided, replacement windows, a new roof, updated electricity, etc. This makes sense. After all, if the previous owners were struggling to make house payments for several years, they probably also didn\u2019t have the cash to keep the house up. <\/p>\n A final thing you have to consider is that, since the houses are usually in poor shape, you won\u2019t be able to get conventional financing. You\u2019ll probably have to qualify for a rehab loan<\/strong>, so you need to be sure the purchase price of the home plus the quotes for rehab you get from a contractor or two don\u2019t go over the amount you are qualified to borrow.<\/p>\n So, why would anyone look at repo homes? Because after you look at the twentieth or thirtieth house, you realize you\u2019re looking at your dream home. And, miracle of miracles, the house is winterized and there is no mold. The price, even with the work you\u2019ll need to do, is affordable, especially if you put in a lot of sweat equity. <\/p>\n Have you ever purchased a repo home?<\/p>\n Photo: SXC<\/p>\n Post from: Blisstree<\/a><\/p>\n