When it comes to Black generational wealth, foreclosures have always been one of the biggest obstacles. Foreclosure rates for Black families are nearly double that of White families, and the effects of a foreclosure can last for years.
With that being said, buying a foreclosed property could 1) build your family’s generational wealth, 2) keep generational wealth within the Black community 3) transfer generational wealth to the Black community.
So is buying a foreclosure home smart? It depends. There are definitely some risks involved, but there can also be some great benefits.
Here are a few things to keep in mind if you’re considering purchasing a foreclosure home:
- Foreclosure homes are often sold as-is, which means you could be inheriting major repairs. Before making an offer, be sure to get a thorough inspection from a qualified contractor.
- You may not be able to get traditional financing for a foreclosure home. Be sure to speak with a mortgage lender about your options before you start shopping.
- Foreclosure homes can often be purchased at a discount, which can help you build equity more quickly. However, be sure to do your homework and ensure the home is worth the price you’re paying.
If you’re considering purchasing a foreclosure home, be sure to do your research and weigh the risks and benefits carefully. It’s not a decision to be made lightly, but it could definitely be worth it in the long run.
Here are a few resources
Foreclosure Properties: https://realtytrac.com/
Black Real Estate Agents: https://www.mvemnt.com/20-black-dmv-realtors-to-know/