What are the risks of foreclosed houses and what should we pay attention to? Can we apply for mortgage loans for foreclosed houses?

There are many types of houses. Do you know about foreclosure houses? They are houses that are auctioned according to legal regulations. Such houses are houses acquired by banks due to some debt problems and then auctioned at a low price. What are the risks of foreclosure and what should you pay attention to?

There are many types of houses. Do you know about foreclosure houses? They are houses that are auctioned according to legal regulations. Such houses are houses acquired by banks due to some debt problems and then auctioned at a low price. What are the risks of foreclosure and what should we pay attention to? In fact, foreclosure of houses still requires attention to some issues related to the housing stock. Can you apply for a mortgage loan for a foreclosure house? Let’s learn more about the relevant content so that everyone can understand these issues.

What are the risks of foreclosure and what should you pay attention to

1. Unknown risks of property rights. First of all, it is necessary to confirm whether there are other creditors besides the creditor. Since private loans cannot be known through inquiries from state agencies, if the original homeowners run away due to debt problems, the bidder may be pursued by other creditors after moving in. Therefore, before bidding, you must understand whether the house has debt problems, whether it has multiple mortgages, etc., and be sure to verify the mortgage release and transfer process in advance;

2. Risk of house defects. When a house is auctioned, the flaws are usually only briefly described, and other problems with the house such as a haunted house or quality problems that cannot be seen for the time being are basically not noted. Therefore, friends who want to bid for this house need to see it on the spot. House (geographic location, house structure and ancillary facilities, actual use of the house, decoration situation, surrounding facilities, property services, water and electricity, community environment, etc.);

3. Risk of unclear costs. Since the foreclosure auction will not disclose the previous transaction status and the nature of the house, such as inherited houses, commercial houses, etc., the taxes and fees involved in the transfer of some houses are very high, and the buyer must have sufficient information before bidding. Prepare. It is also possible that the original owner defaults on property fees, water and electricity bills, etc., which requires the buyer to bear the fees owed by the original owner;

4. There is a risk of not being able to move in when renting. Foreclosure houses that were not leased at the beginning suddenly appeared with tenants holding 10-year or 20-year lease contracts who refused to vacate their houses during the transfer of ownership. Or if there are old people and children in the house that the buyer is photographing and they are refusing to move out, then the buyer who just needs it will not be able to move in in this case.

Can mortgage loans be applied for foreclosed houses?

Mortgage loans can be applied for foreclosed houses as normal, which means that the loan percentage, term, and interest rate are the same as those of ordinary second-hand houses. Buying a second-hand house The down payment for a house can be 3.50%, and the same is true for a foreclosure house. At present, foreclosed houses in Beijing still need to comply with the loan restriction policy like second-hand houses. To purchase a first property, ordinary residences can get a loan of 65%, and non-ordinary residences can get a loan of 60%.

Regarding the risks of foreclosed houses and what should be paid attention to, there are a few points that need to be understood, such as the risks of unclear property rights, defects in the house, and the risks of leasing due to unclear fees, etc. , these are some common sense issues about foreclosure houses. Can a mortgage loan be applied for a foreclosed house? If it is a formal foreclosed house, a mortgage loan can be applied for. Specifically, the loan down payment and interest must be calculated based on the relevant basis of the foreclosed house.