What are Problems Buying Foreclosures at a Trustee Sale?
Buying directly at a legal foreclosure sale is risky and dangerous. It is strictly caveat emptor (“Let the buyer beware”). The process has many disadvantages. There is no financing – you need cash and lots of it. The title needs to be checked before the purchase or the buyer could buy a seriously deficient title with unknown liens against it. The property’s condition is not well known and an interior inspection of the property may not be possible before the sale. In addition, foreclosure sales are exempt from some of the state disclosure laws.
