This is a great time to invest in a new home if you have the money, but the same market factors that make for bargains also make for risks.  Being able to do an ownership search of a property you are looking at can save you a lot of heartache.

Buying a foreclosed home?

A foreclosed home can be an excellent deal, as the bank is trying to cut its losses and wants to unload the property as quickly as possible.  But these homes can be risky to purchase.  It all depends on the reason the home was foreclosed on.

Was there criminal activity at the property you bought?

For example, there have been numerous cases lately of people buying homes that had been used for meth labs.  The buyers didn’t know this and wound up spending sometimes more than they paid for the house to make it livable.

Transfer of property records are public, but in some states and jurisdictions you can look the information up online, and in others you have to go to a physical location.  No one is going to reveal their home was used to make drugs, but if the home was foreclosed on due to the owner’s incarceration, this is the time to dig deeper and look at court records for the criminal history as well as real estate listings.

If you don’t know where to look on your own, your real estate should be able to help.  Or you can find a good online listing source.  A bargain home isn’t one if it makes you or your family sick.  Investigate your home with an ownership search before you buy.

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