Purchasing a house from a probate sale can net you a great home at a cheap price. Even if a seller has already accepted an offer on the property, you may be able to buy it at the court confirmation hearing where the judge will entertain additional bids on the house. Here's what you need to know about the process to help ensure you're fully prepared and increase the chance you'll get the home of your dreams.
Like foreclosed homes, houses sold during probate sales are typically priced lower than market value so they will move faster. Therefore, if you want to purchase a home but don't have a lot of money, buying a house from a probate sale can net you a great deal on a piece of property that may otherwise be out of reach. However, the process is not like the traditional home buying procedure, and here are three things you should know to help you prepare for the complexities associated with probate houses.
Imagine this: a friend is homeless so you let him stay in your house until he can get back on his feet. After several months, he overstays his welcome and you ask him to leave, but he refuses to go. You call the police, but they can't do anything to get the unwelcomed guest out of your home. You speak with a lawyer who informs you that you need to start an eviction.
If you purchased a house several years ago that your family has since outgrown, you may be considering leasing home out to tenants rather than putting it up for sale. This can be a good investment because when the home is paid off, the majority of rental income will be yours to keep. However, leasing out your home involves a degree of risk because tenants can potentially sue under premise liability laws.