The bank foreclosures have led to an increasing rate of home sales activity. A large number of properties are left vacant due to the problem of foreclosed homes. This problem has created a good real estate market for the first time buyers as they can purchase a home at a price that was something unbelievable for them a few years back. However, the buyers are needed to ask for both home inspection and home warranty. As put by David Goodwin, treasurer of the Home Warranty Association ofCalifornia (HWAC), a home warranty is provided by the seller often in a transaction that involves traditional home selling activity.

It has been found that about 90 percent of the traditional home sale transaction inCalifornia included giving of a home warranty by the seller. In this foreclosure market, the seller of homes and properties are the banks. It is by all probability that they will not be willing to provide a home warranty. Moreover, the bank is not well aware of the condition of the home as the occupant was someone different. Hence, the bank will be unable to make the buyer know about the condition of the home. Therefore, it becomes very important for the buyer to ask for inspection as well as home warranty.

In case of a foreclosed home, a buyer must not expect that the home warranty will also include on items that were found during the inspection time. A home inspection is always a necessity as that will give a clear idea on whether everything is in proper condition or not. The home warranty is an added protection that protects a homebuyer against unnecessary expenditures like repair costs within the first year of the possession of home. A buyer should be well aware of the various problems involved in buying a home when it is a market of foreclosure. If the problems are not identified at the first stage, it may cost the buyer heavily later on.

The Home Warranty Association of California happens to be an organization for home warranty companies, which represents about 95 percent of the various real estate contracts that are sold in California. Ahome warranty provides warranty for the main operating systems as well as appliances of the home against any breakdown within one year after the deal is closed. To make home buying a fruitful business, one must ask for home warranty to have a great future.