Buying a house after a foreclosure

Buying a house after a foreclosure can result in considerable savings on the purchase price. Forced sales inevitably lead to 'lower than market price' being achieved, but not always substantially lower.

The risk with foreclosed properties, by their very nature, is that the property might be run down and in need of repairs and renovation, that was not affordable by the previous owner. Any saving made on the purchase price might then be offset by the additional costs you will need to find for the remedial work. Swings and roundabouts, as they say.

Buying a house after a foreclosure attracts the attention of a lot of other buyers looking for a similar bargain, because foreclosed properties are known to be potentially cheaper than average market prices.