A couple of years ago, I wrote about a development that was selling brand new bank owned homes.  There seems to be a bit more of that going on now.  I have run across a couple of subdivisions with brand new homes that are being sold by the bank.

One nice thing about a brand new home that is foreclosed is that it shouldn’t have many of the “deferred maintenance” issues that many foreclosed resale homes may have.  On the flip side, many of them will NOT have a builder’s warranty, although some might.  It would depend on if the bank is springing for a good warranty and whether the builder has gone completely out of business (sometimes the foreclose isn’t the result of the builder ceasing operations, but rather a restructuring of debt).  Careful though, some warranties aren’t that great… they might not cover much of the structure (which is why you want a builder’s warranty) for more than a year or two.