The housing market is struggling and that has some people thinking about buying homes that have been foreclosed.

The homes can cost thousands less than the market value, but be careful the initial discount may end up costing you.

Before you purchase a foreclosed home you need to take a look around. Many have holes in the walls, dirty carpets, and missing appliances.

“They just say well it’s a foreclosure it’s got to be a good deal. Sometimes that's true and sometimes that's not,” said Greg Honeymichael of Meybohm Realtors.

Foreclosed homes may come at a bargain, but potential buyers should note they often are in need of repairs.

“Some are $2000 - $3000. Some are $30,000 - $40,000,” Honeymichael said.

Repairs that can make it very hard to qualify for VA of FHA loans.

“Typically the issue you run into is what type of financing the actual home qualifies for,” Honeymichael said.

The buyer is responsible for repairs and they can take some time to fix.

“Some people want to purchase a house and move in and not have anything to do; other people don't mind putting in a little sweat equity and money out of pocket in the house,” Honeymichael said.

When looking to buy a foreclosed home make sure to find a mortgage broker and real estate agent that have experience with foreclosures. Assess your finances to see if you can take on the repairs and most importantly do thorough research of your foreclosed options. Try to find a house that has minimal to no damage, otherwise it may not be worth it.

“Sometimes you can pay more for a foreclosure than you would if you were buying a house right next door that was in need of no repair,” Honeymichael said.