Trulia.com and RealtyTrac.com recently surveyed U.S. adults to get some insight into what people's perceptions are about purchasing a foreclosure. Here are the common myths revealed by the data and the corresponding reality to set the record straight:

Myth: Foreclosures sell at massive discounts.
Reality: While foreclosures might be discounted massively from what the former owner paid or owed, in reality, most discounts are much more modest.

Ninety-five percent of the surveyed group expected to pay less for a foreclosed home. Eighteen percent expected less than a twenty-five percent discount. Thirty-six percent expected a discount of fifty percent or more.

Myth: Foreclosures need a huge amount of work.
Reality: Stories of foreclosures missing plumbing and every electrical fixture permeate the real estate market. However, many foreclosed homes need only the relatively inexpensive cosmetic updates that new homeowners would probably undertake anyway including paint, carpet, flooring, etc.

Ninety-two percent of consumers would be willing to make home improvements after they closed the deal. Sixty-five percent are willing to invest twenty percent or less of the purchase price.

Myth: Buying a foreclosure is risky.
Reality: This may be true when buying a foreclosure at a county courthouse auction, but most buyers are looking at bank-owned foreclosures. Buying these homes is really no more risky than buying a non-foreclosed home.

Myth: You can't get inspections on the property when you buy a foreclosed home.
Reality: County auction foreclosures may not offer the ability for buyers to have the homes inspected. But virtually all bank-owned properties for sale on the open market allow buyers to obtain every inspection they deem necessary. When a bank sells their foreclosed homes "as is," they want to avoid later liability. It's in everyone's best interest to allow inspections.

Myth: Most foreclosures happen when homeowners just walk away.
Reality: Voluntary "walk-aways" are simply not as popular as many people think. Only one percent of mortgage holders said walking away would be their first choice. Fifty-nine percent wouldn't walk away from their home - no matter how upside down they were on their mortgage.

Myth: There are hidden costs to watch out for when buying a foreclosed home.
Reality: At some foreclosure auctions, there are buyer's premiums and other hefty fees that can really add up. However, when you buy a bank-owned property that is listed for sale with a real estate agent, the closing costs are the same as they would be if you bought a non-foreclosed home. Overdue property taxes, HOA dues and other bills left behind by the defaulting homeowner are generally cleared by the bank that owns a foreclosed home before it is sold on the market. Watch out for these items if you buy a home at the county foreclosure auction.

Myth: You need to be able to pay in cash in order to buy a foreclosure.
Reality: Bank-owned homes are bought in a more normal real estate transaction as opposed to a cash-only auction on the county courthouse steps. Buyers can consult with their Realtor and obtain their mortgage from a Paramount Mortgage Banker in much the same way as if the home weren't a foreclosure.