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Right now, there is a lot of interest in buying foreclosures. There are still quite a few on the market, even though delinquencies are starting to decline. And it is true that you can get a great deal in many cases. My cousin and his wife bought a foreclosure, and it turned out to be a great deal. They are quite happy about how things went.

But it doesn’t all turn out so well. In fact, it is important to be careful when buying foreclosures. You would think that you are getting a clean property, but the bank may not actually discharge all of the liens against it. Fredrica Smith at Real Estate Pro Articles offers this insight into foreclosures:

The fact is that some lenders will not pay off certain liens, such as the superior types issued by the IRS. Additionally, these properties may have tax issues which the banks would rather not have to pay for. In these cases, they may leave you to handle them. Always make sure to get a clear statement on the property before committing.

Clearly, you need to double check before buying a foreclosure. Make sure that the property really is clean and lien free. many people find themselves sorely disappointed when it turns out that their “great deal” isn’t so great after all — due to what the property is encumbered with. So make sure that the property really is clean before you jump in.

Buying a foreclosure can be a great way to get more home for your buck. You will usually get it for less than market value, allowing you to build equity faster — especially when the housing market recovers. But buying a foreclosure isn’t always what you expect. Make sure you have the home inspected before you buy, and make sure you do research on the property to make sure that it really is free and clear.