Quote:
Originally Posted by bomba
I'll let Realtor1 fill in the gaps, but you are wrong in your analysis. Yes, the bank sells the property at "fair market value", but that FMV is based on the fact that you are buying a property without warranty in an "as is" state. So that said, the price can be significantly cheaper then what a comparable unit that is sold with warranty or available condo documents, etc.
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I guess that part makes sense, never thought about the warranty portion of it. So as long as you know what you're getting when purchasing a property, there could still be some value in going with foreclosures. But it could increase the risk, since you could be unaware of all the conditions. Good to know!