(Update: The credit above applies to purchases in 2008--when this post was written. If you are purchasing in 2009, see updated info on the new credit here.)
I've provided here links to all my previous Foreclosure (and Short Sale) Related Risk posts here for convenience.
Short Sales vs Foreclosures - What's the Difference?
Short Sales - Are They Worth a Buyer's Time?
Risks of Buying a Foreclosure:
Bank Addendum - Always written in the bank's favor
Timing - Impossible to control turnaround time
Property Condition & Inspections - Unlikely (impossible?) to get repairs made, and careful to retain your 'right to void'
Title Defects - Be sure to have your own title inspection done!
Financing Complications - Timing and property condition issues combine to create complications with financing, too.
If you're considering buying a foreclosure in Northern Virginia, DC, or Maryland, or need help starting your home search, contact me.
Related: Search MLS
First Time Home Buyer? Sign up for my free first time home buyer class in Arlington or DC.