The housing market is definitely saturated in foreclosure and REO properties.  In order to compete, most conventional homes have been priced low as well.  Although there are many deals to be made and multiple government tax credits to be had, the turnover on home sales is slow.  For this reason, many homes, especially foreclosures are on the market for a considerably long time and although you get a good price, you could also get more than you bargain for in repairs.  Take the time to inspect any home you buy, including those that are not foreclosure or REO properties for these hidden dangers.

Mold is a biggy.  You have probably heard about all those people who died from black mold inhalation in their homes and it is a serious problem.  It can be hidden in the walls and under the stairs.  Often times fungus will begin to grow in empty cabinets and drawers, but this is usually a less serious issue than mold in the walls.  Drawers and cabinets can generally be wiped down with bleach or even removed and replaced.   Proper handling of a mold situation however is imperative.  Clean-up or mold removal should be performed by a licensed professional. 

It’s okay if a home you are considering is missing sinks, toilets or fixtures.  It’s not unusual for this to be the case in “as-is” sales.  What is more important is how these items were removed.  Were they yanked from the walls and floor permanently damaging existing plumbing? There is a huge difference in cost when you are comparing buying a new sink to putting in all new plumbing. 

Don’t forget to take a deep breath and smell.  Heating and cooling systems can harbor mold when not cared for.  Oily smells and obvious black cob webs can indicate a furnace that is need of repair or replacement.  Again, this is a huge difference in repair price.  Most central air systems cost big bucks and a new furnace is right up there with them.

If a house has been on the market during winter months, you will want to be sure it was weatherized.  If a home is not weatherized you could be in store for major plumbing repairs.  In colder states, plumbing will freeze and burst if not properly drained. 

These are just the less obvious issues that could be lurking beneath the service ready to spoil your great real estate purchase.  A licensed home inspector will be able to identify more common issues.  Remember however, with foreclosure purchases, you do not always get the opportunity for a full inspection.  REO properties are the safer purchase where inspections are permitted and encouraged.  This is the time to buy and it couldn’t be easier to buy safely.