For the adventurous buyer Pahrump foreclosures can be an exciting way to create a good deal. Typically the homes require a little fixing up, but they are worth the effort. What makes a foreclosure different from any other potential deal on the market? The foreclosure process is when a lien holder collects a property for compensation of the lien terms not being met. Typically this means a loan was provided by a bank, and someone was unable to make the payments, so the bank takes the home back. This is why banks require down payments, so that when they go through the cost of taking a home back they are still able to sell it for a profit after all expenses through the process. 20% is generally the standard, so loans below this down payment amount are insured to make up for the lack of security.
Once the property is foreclosed the bank is the new owner and seller. Since they are a bank, they will not know much about the home, and will most likely never have anyone inside it, so paperwork explaining that the bank sells the property as is with no knowledge of what might be wrong is typical. Banks even go the extra step to require buyers sign away some of their legal protections is a problem is found with the property after purchase. Because of these additional requirements and risks needed to buy a Pahrump foreclosure they can sometimes be purchased at a discount. These types of sales are much more common now that banks own a large sum of homes, so the process seems less scary than It used to.
Pahrump foreclosures also have a tendency to get broken into, and get used as party pads or homeless shelters. The damage varies, but always falls on the buyer as a to do list of repairs needed. The banks are not going to roll up their sleeves and fix a house, and typically they only board them up or maintain them at all because the city requires it. Banks are horrible homeowners, and even worse home sellers. Regardless they will be in the business more heavily until the inventory is sorted through, so plan on seeing many more Pahrump foreclosures listed.