Switch to Desktop Site
 
 

Is it ethical to buy a foreclosed home?

(Read article summary)
Image

Paul Sakuma/AP/File

(Read caption) This foreclosed home in East Palo Alto, Calif. was for sale a month ago. Is it ethical to buy a foreclosed home?

About these ads

I was having a discussion with Linda the other day about buying foreclosures and doing it the “right” way. The reason we were chatting about it was because during Financial Peace University I remember Dave talking about how he went and visited homeowners who were about to be foreclosed upon and offered them $10K more than the starting price at the auction.

For example, one homeowner he visited was going to be foreclosed upon 3 days later – the bank was going to be auctioning the property with a starting price of $150K. The homeowners house was appraised at something like $250-$300K – and they were asking a price in that ballpark. But Dave was aware they had 3 days to sell the house or they would be foreclosed upon.

The question I keep asking myself is – is it right?

Morally, it feels a lot different buying a bank-owned property that was foreclosed upon – because the damage is done. The homeowner already lost the house – and getting a deal from a bank (if you can) seems justified.

On one hand you could argue that any options offered to someone about to lose their house is a gesture of kindness – because after all, they can turn down the offer.

But it seems to me that there is a very fine line between using someone’s misfortune for gain and just offering what it’s worth to you at that given moment.

Anyway, my hunch is that every situation is a little different, so there may not be a black & white answer. But either way, what do you think?

Add/view comments on this post.

About these ads

------------------------------

The Christian Science Monitor has assembled a diverse group of the best economy-related bloggers out there. Our guest bloggers are not employed or directed by the Monitor and the views expressed are the bloggers' own, as is responsibility for the content of their blogs. To contact us about a blogger, click here. To add or view a comment on a guest blog, please go to the blogger's own site by clicking on the link above.


Follow Stories Like This
Get the Monitor stories you care about delivered to your inbox.

Share

Loading...