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A downside of “laissez faire” (free enterprise) is that the buyer should really always be aware of possible fraudulent transactions. A good source of great house buys is the list of foreclosed properties which could be obtained from your local bank or any government office offering affordable housing nearest you.

Some companies tie up with government organizations and market these foreclosed properties to unsuspecting buyers without fixing the problems in basic utilities in these areas such as water, electricity, garbage disposal and sometimes even the roads within the subdivision. When homeowners ask when the problems are going to be fixed, the standard answer is, they will attend to it at the soonest possible time. In one case, a unit was bought by an overseas contract worker where the company failed to provide a new water tank to the subdivision (after the original one was toppled by a particularly strong storm almost two years earlier). Living in an area without good water supply is really unacceptable! Other problems piled up within that particular area so much so it came to a point where the first buyers put up streamers at the gate warning other prospective buyers not to buy any property there. To sum up; first, do your homework. Inspect the property so you know exactly what to expect before letting go of your downpayment. It would be wise to talk to the current homeowners to get an accurate picture of the area. Second, determine whether the property advertised is what you are really looking for. Is this what I really want? or need? Is this place worth all the trouble (assuming your inspection reveals certain challenges) or should I look for another one? You need to do these basic steps so ensure buying your dream house doesn’t turn into a nightmare.