Buying foreclosures is a complicated business, and you should be working with a lawyer who can guide you through the process, which differs from one area to another. I wonder if you understand that the successful bidder at a foreclosure auction must come up with the purchase price in cash, either immediately or within a very short time (as I say, local practices differ). It's not the same buying on the open market, where you are allowed time to obtain mortgage financing.
There are other considerations, mostly legal, and again, I'd recommend working through a lawyer if you want to buy that way.
EXPANDING CAPE COD
Dear Edith: In this market, is it a good idea to add a bathroom and renovate two bedrooms upstairs on a Cape Cod-style street? -- e-mail
Answer: That depends on price levels on your street, how the house presently compares with its neighbors, your financial situation and how long you intend to live there. You can get informed opinions for free by calling a few local real estate brokerages and asking for advice.
RISK OF LOSS
Ms. Lank: I'm reviewing a counteroffer on my house in which the buyer has added the following verbiage: Should damage occur to property between buyer walk-through and possession, damages will be repaired at seller's expense.
Is this normal? It seems like this could open me up to all sorts of liability and potential claims of damages. -- e-mail
Answer: The buyers have a right to receive the property as it was when they viewed it and made their offer. It's not unusual to agree that risk of damage or loss before closing is borne by the seller, and sales contracts often contain a provision to that effect.
In many states, the law says that if all or part of the property is destroyed, the seller can cancel the contract and the buyers get their deposit back. If a buyer prefers to sue, a court may require the seller to go through with the sale and turn over any insurance proceeds to the buyer.