Is it ethical to buy foreclosed homes?

[Anonymous]

Yes

No

Other

[WindAtMyBack]

Why wouldn't it be ethical? If it's already foreclosed, it's too late for the buyer to do anything about it. It's gone.

If the sale price is more than the balance owed to the bank, the borrower will get the excess proceeds. So the borrower can still retain some equity in the house even during a foreclosure.

I used to bid on foreclosed houses. Those were all VA loans. I never got one though. I don't see anything at all wrong with it.

True, some lenders are scumbags and predators, lending money to high risk borrowers. But even so, the borrower bears the responsibility of knowing what they can afford and making the payments.

[DrPepper12]

This is a great question !!!

The laws and culture of capitalism say absolutely yes.

Being a moral ethical and empathetic being, I understand your concern that you're taking advantage of people's misery. That misery may have been external forces or their mistakes or even just a victim of circumstance. All of those things are not on you but I understand how you might feel like you need a shower after closing.

[lightbulb27]

I think so. but I question how ethical it is to charge exhorbitant taxes at inflated prices when peoples incomes don't keep up with inflation. that... is the problem.

[jshm2]

There is nothing "unethical" about buying or landlording homes.

The problems are mainly with the banks and companies gouging the market.

[exitseven]

Yes, it is what it is

[noohair]

If you don't break the law.