What makes buying a foreclosed property risky? Select two. The title fee is set later and can’t be negotiated

Question:- What makes buying a foreclosed property risky? Select two. The title fee is set later and can’t be negotiated They’re usually sold “as is” Usually, you can’t inspect the home in advance You must use an adjustable-rate loan for purchase

Answer

Normally sold “as is” – When a foreclosed home is bought, the buyer typically gains it in whatever state that property finds itself without any repairs or cleaning up. This also means that you assume all of the homes defects, damages or problems with no consequences. Hidden defects can become costly.

No preview on property – In foreclosure, you cannot have a good inspection of what is being purchased because the previous owners had already left it. This hinders you from learning about problems only after buying the house. Inspection would resolve defects that may be addressed prior to closing in case of the normal sale.

Briefly, the inaccessibility to make a full evaluation of home’s condition until after buying is already done leads the person into unpleasant surprises and expensive fixes when purchasing foreclosures . The fact that there is no warranty of any kind on current state makes this type of an investment riskier than they actually vetted, and insured against defects from a normal Process home.