Does anyone know about buying a foreclosure home? I see some beautiful homes online for way too cheap. Whats the catch? How does the process work?
2006-07-04 17:33:53 · 7 answers · asked by kristidawn52 2 in Business & Finance ➔ Renting & Real Estate
go to www.hud.com
2006-07-04 17:35:42 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Foreclosure homes are usually auctioned off for cash only. That's the hardest part- trying to raise the $$$. We tried to buy an acreage for 65,000 at a sheriff's auction but we didn't have the dough. A company eventually bought the place and then somebody went through a realtor and bought the place.
When a property forcloses, the peeps only want to get out what money that they put into it. You are basically buying the balance of the property's assesed value. It's way hard to get a loan for a home w/o a realtor because of all the variables about the home that need proven.
2006-07-05 00:35:11 · answer #2 · answered by Anonymous · 0⤊ 0⤋
CHhine is partially correct. i am a foreclosure agent. i am licensed in the state of michigan through coldwell banker frewen in portland michigan. my license is only good for this state, but if you don't live here i can still pass on some info for you to review... i just wouldn't know your exact state rulings. foreclosure homes are sold by a process called "sheriff's sale". in my counties local newspaper in the "legal" section homes that are in foreclosure are listed there. it doesn't give the address, but gives the owners names, and the foreclosure amount, a legal discription with a tax i.d. number. you can call your local "equilization" department and give them the tax i.d.# and they will give you an address. also in the paper will be the date of the sheriff's sale and time. there will also be something call "redemption period" (the amount of time the home owner has to move out or redeme, pay off the total balance, AFTER the sheriff's sale took place.) in michigan the redemption period is 6-12 months, depending on your equity or acreage factors. redemption can be accelerated to 30 days in the event of abandonment (person moves out taking all assets with them and doesn't have the house listed for sale). you don't need to look for foreclosures online. you can look in your local newspaper. the catch... you're buying AS IS, usually interior sight unseen and mechanically and structurally uninspected... you will have no recourse if something is not disclosed! lenders on not required to disclose ANYTHING on foreclosure properties. another catch, your mortgage has to be in place and ready to purchase. you don't have to purchase BEFORE, or at the sheriff's sale. you can work out an agreement with the bank to close during the redemption period... or within days of the redemption being up if your bank requires an appraisal (most will unless you have a significant amount to put down). if you have more questions: ellereeves@yahoo.com GOOD LUCK TO YOU
2006-07-05 02:53:13 · answer #3 · answered by JayneDoe 5 · 1⤊ 0⤋
Well depends at what point of the foreclosure it's at. Pre-foreclosure you can deal with the home owner and the original bank.You can discount the loan. of the balance owed etc
Foreclosure auction is when the bank took the home and now it is a REO property (banked owned).
More infor you can email me or check out my web site...www.foreclosureavoidance.ws
2006-07-05 22:06:05 · answer #4 · answered by innovativeinvest@sbcglobal.net 2 · 0⤊ 0⤋
when a bank repos a home they are liquidating it to retrieve their assets. So you gt a better deal then if you were to try to get a loan for a new purchase.
But remember this, when you do this you more than likely will be dealing with a broker and they cant be trusted. Some of them will deal with the bank while the person(s) are trying to save their home and get it repoed just so they can buy it and try to make a profit on it.
Not to mention buying homes like that to me is preying on someone elses misfortune.
2006-07-05 00:39:00 · answer #5 · answered by Biker 6 · 0⤊ 0⤋
biker has a warped view of business..if you are a person who doesn't pay your mortgage, you will eventually go thru foreclosure...are you suggesting that people be able to stay in a home they don't pay for???? what if YOU owned it, would you think that then??? It isn't "misfortune", it's not paying! And Brokers are not all unethical. They do try to make money, just like everyone else....should they volunteer their services and starve????
crazy non-thinking!!!!!
2006-07-05 01:12:30 · answer #6 · answered by Anonymous · 1⤊ 0⤋
From which country are you?
2006-07-05 04:36:07 · answer #7 · answered by Upal 4 · 0⤊ 0⤋