Buying 'Inexpensive' Foreclosed Homes May Come Loaded With Major Hidden Costs

In Charlotte, North Carolina, WSOC-TV Channel 9 reports:

• A lot of people are looking to cash in by buying foreclosed homes, but some of those foreclosed homes may not be such a good deal. Action Nine Reporter Don Griffin rode along with a professional home inspector.

• Griffin found a foreclosed home for sale at $108,000 that he described as a babydoll, which is an industry slang term for a good deal. “No sir. It’s not a babydoll. Not now,” said Butch Upton, a licensed inspector with Housemaster. Upton said anyone buying a house like this or any foreclosed home without getting an inspection is asking for trouble.

• He found extensive termite damage in the basement. “It’s all the way down that back wall," he said. There is also water damage, mold issues and cancer-causing radon gas with readings high enough to require expensive corrections. "This house could cost anywhere from $2,000 to $5,000 to mitigate,” Upton said.

• Griffin climbed into the attic, where Upton showed him other hidden problems like leaks around the chimney and a cut board on a roof support. Outside, Upton showed Griffin where the deck was separating and unsafe and also the heat pump is missing. "It’s obviously been stolen and cut away," Upton said.

• Upton said to fix all these things would cost $30,000 making this foreclosed home not a good deal and because foreclosed homes are sold as is and that extra cost falls to the buyer. "That's why it’s important to have an inspection to know what you're buying,” said Upton. But before hiring any inspector, verify they are licensed and insured. Griffin said the bottom line is you can't assume that because it's a foreclosure that it's the best price.

Source: Foreclosed Homes Could Pose Heavy Hidden Costs.