As you know, perfect timing – not just "location, location, location" – is critical when it comes to purchasing a new home and/or investment property at the right (lowest possible) price. That's because competition drives prices up. At Foreclosure.com, we target low-priced distressed deals – bank-owned homes, government foreclosures (Fannie Mae, Freddie Mac, HUD, etc.) preforeclosure listings, real estate owned (REO) properties and foreclosure auctions, among others – and pass them (and huge savings) onto smart homebuyers (that's you!).
Determine whether you're the type of person who can easily take advantage of a seller's misfortune under these circumstances and/or put a family out on the street. Oh, critics will argue it's just business and sellers deserve what they get, even if it's five cents on the dollar. Others will feign compassion and trick themselves into believing they are "helping" the homeowners avoid further embarrassment, but deep inside yourself, you know that's not true.
Unlike in the United States, where a foreclosure means the end of the line, the foreclosure hearing in Spain is just the beginning of the homeowner’s troubles. They will have to work for the bank for many years and will be unable to ever own anything—even a car. Spanish mortgage holders are responsible for the full amount of the loan to the bank in addition to penalty interest charges, and court fees. Much of this can be attributed to Spain having the highest unemployment rate in the “euro zone.” Unlike in the US, bankruptcy is not an adequate solution since mortgage debt is specifically excluded. Unlike other European countries, you cannot go to the courts for any sort of debt relief. There has been much contention over these policies in the Spanish Parliament but the government is convinced that keeping these policies will prevent Spanish banks from ever experiencing something similar to the US mayhem. With repossessed real estate properties on their books worth about €100 billion the banks in Spain are eager to get rid of foreclosures.
It’s normally not necessary to commission a home inspection on a traditional home rental, but remember that rent-to-own is not a traditional home rental. This is a short- and long-term investment that requires the utmost attention to detail. And the small upfront cost of a home inspection could save you literally thousands down the road. Therefore, hire an independent home inspection professional to uncover any problems the house may potentially have. It’s important to do this even if the current homeowner furnishes a disclosure statement that attests to the condition of the home. If the independent home inspector points out problems, it’s important to determine whether or not the issues will prevent you from getting a future home loan once the rent-to-own term ends. Therefore, make sure the contract specifies who is responsible for making the necessary repairs discovered during the inspection prior to finalizing the rent-to-own agreement. The homeowner might offer a credit off the final purchase price at the end of the rent-to-own in lieu of payment for damages. Either way, be sure to get everything in writing before finalizing a rent-to-own contract.