Would you ever invest money in a distressed property?

[Good-Person]

Distressed properties are the kind of property whose owners may not have paid a loan. Such kind of of properties are sold to other parties. It might be possible that a financial institute might be selling the property in many cases. So, would you buy such kind of properties?

 

[Kane]

When I am buying a property whose owner has a pending bank loan and the new buyer is supposed to pay the loan, I will always make sure that the price I am paying for their property is lower than the market value. I do not see any issues in buying these properties as long as I don't end up paying more.

 

[linux.poet]

There's nothing wrong with buying a foreclosure as long as you are willing to develop the property or repair the damage the previous owner may have caused on their exit. Owners of foreclosures may steal parts of the property, such as the sink or toilets.

I would be happy to buy such a property because they tend to sell for less than market value, as long as I had the cash to cover the repairs, if any. My dad bought such a property 10 years ago, where the previous house had burned down. That repair process was more extensive - clean up the mess from the fire and build a new house - but that was well worth it as the resulting home will be eventually sold at a profit.