Investing in Distressed Mission Viejo Real Estate? Head’s Up on the Foreclosure Game

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Investing in Distressed Mission Viejo Real Estate? Head’s Up on the Foreclosure Game

There’s no hotter market in Orange County right now than foreclosed properties. But if you’re an investor, there’s a lot that can go wrong at the auction. And, sometimes surprisingly, thin Check out our ‘right’ and ‘wrong’ scenarios, below. You think that for people who play this game, all it takes is money? There’s a lot more to it than that. These aren’t casual endeavors, experts warn. For a real investor, it’s a real job. What can go right Scenario 1: You’re standing on the courthouse steps with your cashier’s check for $500,000. You’ve pored over any records you could find to learn about the house you’re about to bid on. Too bad you never could get inside it. But, fingers crossed, here goes … Oh wow! You made the winning bid at auction, and you enter the home for the first time. What’s this? Apparently, at some point, the owner did an extensive remodel. It turns out there’s a swimming pool in the secluded backyard. There must be $100,000 worth of upgrades here, and none of the bidders – including you – even knew it!

Marilyn Kalfus of the Orange County Register makes some great points about what can go right and what can go wrong in buying foreclosed Mission Viejo homes for sale at the Court House steps. The same rules apply to other Orange County cities for that matter. In a nut shell, when you buy foreclosure properties at auction, you are buying sight unseen. Sure, you may have driven by, looked in the windows, and if it looked vacant, you may have even gone in the back yard. (I am not suggesting you use these tactics, just setting up a hypothetical scenario.) The fact remains that you have not done any kind of inspection regarding the condition of the property. And a quick look in the window will not alert you to missing appliances, cracked slabs, and mold on the risk side. Nor will a little peek give you all you need to know on costly upgrades or amenities that could provide a huge reward.
And just remember, these risks and rewards also apply to ANYONE buying foreclosed home on the Court House steps. It’s just that these days, those folks are typically investors. Especially in Mission Viejo real estate.

Posted on Mission Viejo Real Estate-Mission Viejo Homes For Sale

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