File this one in the “no shame” category.
One of the top homebuilders in the nation has created a webpage in an attempt to deter prospective homebuyers from picking up a foreclosure discount instead of a new home.
Lennar, one of many home builders suffering from the ongoing mortgage crisis, noted on its website that though you could save upwards of 25 percent off the market price when buying a foreclosure, there are many associated risks.
These include purchasing a property as is, which may require maintenance, and dealing with disgruntled owners that may leave the property in bad shape.
Additionally, Lennar warns that foreclosed properties may not come with any kind of warranty, and could be riddled with high-balance mortgages that require the buyer to make a bid above the current appraised value.
Lastly, Lennar cautions prospective buyers that financing is more difficult on foreclosed homes, and even go so far as to say the selection is limited.
Interestingly, there are a ton of foreclosures in many of the “neighborhoods” created (seemingly overnight) by massive home builders such as Lennar, right next-door to the brand shiny new ones.
Obviously their presence is putting downward pressure on home prices, which are already heavily discounted compared to boom-levels.
But the builders seem more interested in unloading their existing inventory than dealing with the mess already created.