Banks becoming more open to fixing up foreclosures
March 15th, 2011 9:52am
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The Chicago Tribune says, in the past, most banks have been unwilling to spend money to spruce up their foreclosed properties. But with so many distressed properties available, some may be changing their tune.The paper says there are a couple of strategies behind the plan. The first of which is that the home is more attractive to potential buyers, even if it may cost more than other foreclosures.
The other potential advantage, the paper says, is that the properties may no longer be classified as "uninhabitable" by lenders, allowing buyers to qualify for a mortgage to live in the home.
"It's probably the most hideous livable house you'll see, but I can fix it," buyer Bill Schramm told the Tribune about one fixed-up foreclosure. "Nothing even comes close to this house in terms of value per dollar. There's a ton of houses out there that cost less than $125,000. Do I want to buy them and move into them? No."
The strategy could also help some banks sell many of the Houston foreclosures currently in the market. According to RealtyTrac, more than 11,000 properties in Texas received a foreclosure filing last month.
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