When buying a house, try checking out the foreclosure listing of your local bank. You are most likely to find prime real estate at a much lower cost than those offered by real estate agents. Some government agencies with lending capabilities or functions also post a listing of foreclosed properties. Another good source of listings is the Internet. Several websites keep records of foreclosed properties and allow access to their databases.

These sources of foreclosed property listings may also provide lists of properties on pre-foreclosure status or those put under bankruptcies. Some will also offer free updates and alerts on foreclosures, via email, phone calls, or mailed notices.

If you are more entrepreneurial, buying foreclosed properties and selling them is possible too. In fact, there are those who have already earned substantial profits from this kind of business venture. It makes a lot of sense, actually. Banks or government agencies holding these foreclosed properties want to dispose of them as quickly as possible because it is better to transform these idle assets into cash that can be easily invested as soon as possible. The selling rates of these properties are therefore at the minimum. Buyers can get these houses at a much lower price; some can go lower than fifty percent of their original value, especially during seasons when real estate values dip low. When they resell them at an appraised value when demand is high, they can earn thousands of dollars in profits.

Finding an affordable home property at prime or desired sites is quite easy. These web-based agencies or providers of listings of foreclosed properties have a vast network of sources, covering the whole United States and even other parts of the world.

So the next time you consider buying a property, check out first the foreclosure listings. You will get much more for your money.

A conventional subdivision is the traditional method of building and conveying homes and lots that traces its roots in America back to the late 1800s. A conventional subdivision is different from a common interest subdivision (as discussed on page 6) in that the individual owners within the subdivision own only their interest in the property and do not share an ownership interest with other owners within the subdivision. Generally speaking, the streets, utilities, drainage systems, and sidewalks become the property of the city or county, or utility company as applicable.

The maintenance responsibilities of a homeowner in a conventional subdivision begin at the front property line, normally from the back of the city sidewalk and run to the property lines along the side yards and back yard. Sometimes, the city requires that the owners maintain the sidewalk in front of their house, even though they do not own it. There is no homeowners association, and it is up to the individual homeowner to maintain his or her own property.

In recent years, a “hybrid” type of subdivision has become a popular tool in land planning. It is called the “diminimus planned unit development” or DPUD. Like the conventional subdivision, the homeowner living in a DPUD receives a deed to his or her lot and has individual maintenance responsibility for the house. On the other hand, like a common interest subdivision, there is a homeowners’ association to manage and maintain a smaller number of subdivision components that may include streets, recreation centers, landscaped areas, and security gates.

If Your Home is Located in a Common Interest Subdivision

Common interest subdivisions are often master planned communities with common areas consisting of townhouses or condominiums (flats) or a combination of both designs. The method by which title to the homeowner is conveyed can be complex and lengthy and is beyond the scope of this Manual. However, as a general rule, the homeowner receives individual title to some portion of the building and a fractional ownership interest in the rest of the project including the landscaped areas, streets, swimming pool, and recreation facilities. The responsibility for maintenance of the common areas, including the exterior maintenance of the buildings, falls to a homeowners association (HOA) whose board members are elected by the individual owners within the community. The responsibility for maintenance inside the townhouse or condominium generally falls to the individual owner. This is often called an “airspace” responsibility or a “paint-to-paint” responsibility.

If the buildings within the community contain decks, balconies and patios, there is a good likelihood that these architectural features are described as restricted common areas. External storage facilities may also receive a similar designation. Restricted common area means that this particular area, while remaining under the control of the HOA, is to be used exclusively by the occupants of the condominium or townhouse.

The responsibilities for maintenance of individual areas, common areas, and restricted common areas, are spelled out in a document called the Covenants, Conditions, and Restrictions (CC&Rs). The CC&Rs are recorded on your title to the property, and every homeowner receives a copy of the CC&Rs at the time of purchase. While the CC&Rs are a legal document, it is important that each homeowner become familiar with their rights and responsibilities as a member of a community association.

Who’s Responsible?

Many persons who purchase a home within a townhouse or condominium community mistakenly believe that “someone else” is going to take care of all the cleaning, maintenance, and repairs for the entire project. However, it should be noted that the “someone else” responsible for nearly all of these items is a board of directors comprised of fellow homeowners. Like a small form of government, the board of the homeowners association (HOA) makes important decisions regarding monthly homeowner assessments, budgets, rules of conduct and the employment of maintenance and management companies. These decisions have a direct effect upon the quality of life and preservation of values within the community.

For maintenance responsibilities of individual owners inside their own home, the following basic maintenance guidelines are recommended:

Manufactured Products: Follow the maintenance recommendations found on pages 20 – 98 of this Manual. You may also have been given maintenance and care instructions on manufactured products within your house for such items as fireplaces, water heaters, kitchen appliances, carpet, and hardwood flooring, to name a few. Take the time to learn and apply these instructions;

Plumbing Fixtures: Keep plumbing fixture drains clean and free flowing. Use drain cleansers on a 30-day to 6 month interval. Do not put drain cleaners into a garbage disposer, the cutting blades may become corroded;

Ventilation: Use the vent fan or open a window when bathing or showering to reduce the likelihood of mold and mildew. Wipe shower stalls and tub enclosures after use to remove excess moisture. Let the fan run for 15 minutes after bathing or showering or leave a window open (if available) to allow the room to dry. If water has spilled over the outside of the tub, wipe it up immediately. The seam between the tub base or shower pan and floor can be vulnerable to leaking and requires periodic caulking;

Balconies and Decks: Avoid placing potted plants directly on the surface of a deck or balcony. Place plastic or decay resistant blocks (such as redwood) to keep the pot off the surface of the deck. This will allow air to circulate and allow the surface of the deck to dry completely. Use a saucer under the pot and avoid overwatering. Move pots and furniture often so that they do not remain in one location permanently. Avoid placing potted plants on the top of the deck railing. The deck railing was not made for this use and the possibility of pots falling off creates a hazard. Because decks, balconies and patios are normally restricted spaces and enclosed by fences or railings, it is important for each homeowner to monitor the condition of these surfaces. Conditions such as wobbling railings, nails pulling loose, cracks in surfaces, and rotting wood should be reported to the management company representative or a member of the board of directors.

Common Area Observations: Observe unusual and potentially damaging conditions in the common area and report them to the management company representative or to a member of the board of directors. Such conditions might include broken sprinkler heads flooding water in unintended areas; irrigation systems spraying during periods of heavy rain; trash enclosure doors broken or in bad repair; street drains and yard drains not draining freely; and pigeons and other wildfowl taking up residency.