June Fletcher writes, in an article in the Wall Street Journal, about 24-year-old Brendt Montgomery. He shares his experience in purchasing a distressed property at a bargain price – or so he thought.

Here’s how his search started out:

After looking around for a day, he quickly found a condo that had been repossessed by the bank. He gave it a quick tour, made an offer and then embarked on a short vacation. While he was gone, a bidding war erupted, and spurred by the competition, he upped his bid to $143,100. His offer was accepted, and as soon as he returned, he signed a 33-page contract without really reading it.

Clearly one day is not enough time to search for a property – even if you’ve already logged hours with your internet search.

See what happens to him:

After paying $2,000 for an earnest money deposit, plus $250 for an inspection and $85 to the condo association—but before the deal closed–he again toured the condo.

There were problems: dirty carpets, mold in the air conditioning system, holes in the wall. He had second thoughts about how secure the first-floor location might be, and realized that the north-facing windows would never let in much light. “It was a little depressing,” he says. “I realized I’d acted hastily.”

The $8,000 tax credit is attractive, along with foreclosure pricing. But, to make sure it remains attractive, you’ve got to keep your head about you. (See previous post!)