Power of Sale?

[SGTech]

Hi all,



I am looking for some input of power of sale properties. What are the inherent benefits and risks of dealing with power of sale properties? Have any of you in vested in or specialize in these types of properties?



Thanks,



Scott.

 

[markl]

Hi Scott,



You are buying the property as is where is. The seller makes no warranty or representation to anything. You don't know what the former property was so a good inspection is necessary. In one case I was purchasing a 4 unit property with 2 tenants and 1 of the tenants died before closing and they did nothing nor did they know anything. Just buyer beware. Know what you are getting into.



Regards,

 

[SGTech]

Hello Mark,



Do you find that the lower prices on the properties are worth the extra concerns/hassles or does do you basically have to look at it on a case-by-case basis?



Thanks for responding.



Scott

 

[housingrental]

Case by case

Be wary of major potential issues / drug production (though rare) damage / etc.

A lot of people living in their home XX years might not have the cash to spend money on repairs - and don't want to move - know what you are getting into before pulling the trigger

 

[markl]

Hi Scott,



As Adam has indicated it is a property by property basis. The last one we bought I think we got a great deal on but I haven't bought another in 10 months. It just depends on the scenario and your plans for the property.



Regards,

 

[SGTech]

Are the prices on a foreclosure/power of sale set in stone or are they negotiable like any other?

 

[housingrental]

Negotiable - though often not by much + many extra eyes on it re POS gets people interested in it