Have you ever considered buying a home from an auction or a bank?

If you've ever considered buying a home from an auction or Bank you're not alone. There could be great savings buying a home from a bank or an auction. Most of the time these properties are not on the market which means that less people know about them which could mean more savings to you and your pocketbook. But buyer beware if you are interested in buying a home from a bank there are many things to consider. It's always important to know that these types of properties may come with many risks. Before you make an offer on these bank owned homes you may want to consider the following.

How long has the home been vacant? Has the home been vandalized? When was the last time there was a home inspection done on the property? Has the city of Los Angeles's building enforcement had any code enforcement issues with this particular home? These are just some of the questions to ask before you buy these types of homes.

We highly recommend before you make a commitment and buy these types of homes that you hire a local licensed home inspector. A home inspector can walk the premises on the inside and outside of the home. He should be able to detect mold, electrical and plumbing issues. Should be able to inspect the roof and see if you have any leaks. He should be able to walk around the premises and see if there seems to be enough drainage around the property. Because foreclosed homes rarely have anyone living there for a certain amount of time there are most likely a bunch of issues you have to address before you can safely live there. Some of these properties have been vacant for years and have been neglected. And everyone knows that a neglected home could have major issues. Some of these issues could result in a major financial investment. Some of these issues could be a broken drain line. Or it could mean that the property is not structurally sound, it might be in a hillside area I could have hillside or structural issues that need to be remedied.

Because foreclosed homes come from a bank or lender most of the time they do not come with a homeowner who can tell you about the property. When you buy a property from a homeowner most of the time they have a complete history of all the issues with the property. So they could very easily tell you how many times they've had a clogged sewer line drain over the past ten years. They can tell you if they have neglected the home and if they have what they have neglected. The homeowner can tell you when was the last time that you repaired or replaced the roof. A homeowner can tell you if their electrical panel is up to code and if it's working properly.

Another issue with buying a bank owned home is that. Most of the time a proper home inspection cannot be done because the utilities are not currently working. Most often than not these types of homes do not have running water or electrical services. Which means that you cannot thoroughly inspect the home if all that electrical components cannot be turned on. Also will not be able to run the sink and to check the drains if the water is not working. It's common to find a poorly maintained or deteriorated property that is now a bank owned home. Very possible that the previous owner ran out of money and they did not maintain or repair the home the way it should have been.

Vacant homes have other issues that you have to consider as well. When was the last time that the roof was repaired? When was the last time there was a home inspection done on this entire property, not just the structure but what about the grounds, is there enough drainage on the property? Is this a hillside property? If so, where's the closest earthquake fault line closest to the home? Was the home built correctly to begin with? And does it have a certificate of occupancy from the city of Los Angeles. Another important factor to consider is since the home has been vacant you smell any mold or mildew walking through the home. If so then you may require a specialty home inspector who specializes in mold inspection before you buy this property.



We always recommend that you protect yourself and hire a local home inspector to perform as many home inspections as possible. These are just some of the home inspections that you may want to perform on this home: general home inspection, electrical and water inspection, soil and geological inspection if the home is on a hillside. Drainage inspection, roof inspection.  Although to do this many home inspections will cost you, you can be rest assured that you are protecting yourself and your investment by having a licensed home inspector perform these types of home inspections.