Thinking about buying a house or condominium at a foreclosure? — Be careful! In all likelihood, under both scenarios, you will be responsible for paying all charges (assessments, interest, and attorneys’ fees) that were incurred and owed by the prior owner. You may want to wait and allow the lender to purchase the property at the foreclosure sale and then try to negotiate with the lender on a purchase price after the lender takes title to the foreclosed property.
Typically, when a lender forecloses and takes title, the lender is allowed by law to pay a reduced amount, to satisfy all homeowners’ assessments or condominium assessments of the prior owner. If you find a lender that is willing to sell you the same property, you may be able to avoid some extensive hidden costs. There are other risks to bidding at a foreclosure sale and you should seek advice and conduct some due diligence in advance.