2006-11-09 16:13:30 · 6 answers · asked by boyitsnoteasy 1 in Business & Finance ➔ Renting & Real Estate
benefits : you may get a better deal then the market price , the forclosing bank may give you a better mortgage deal
drawbacks : those kinds of properties may carry lots of repair cost if not surveyed or checked profesionally
2006-11-09 16:23:52 · answer #1 · answered by serengeti 3 · 0⤊ 0⤋
Benefits include: Getting some equity right off the bat.
Disadvantages include: a little more Rigmarole. You do pay a price to get that great deal. But it's manageable. You may have to do some repairs but that's a given with just about any home.
The hard part can be finding the home. Some people actually go through public records which can take forever. I use Foreclosure.com when I purchase my rental properties. It makes the research part the easiest part.
There is a whole lot more to learn about foreclosure buying/investing. If you go to that site it will give you all the information you need, including state laws, financing info, etc.
Good Luck
2006-11-10 10:29:04 · answer #2 · answered by Anonymous · 0⤊ 0⤋
As with any high-dollar market, the real estate market has its bargains as. It’s just a matter of knowing where to look. Foreclosure properties offer first-time home buyers (and seasoned home buyers, as well) a way to acquire their homes at incredible prices, sometimes saving as much as 30% to 50% on the price of their home. Some properties can be purchased for half of their market value. Up until recently, the hard part of purchasing these homes was finding foreclosures that were available for sale. But, if you were walking by the courthouse steps, and saw a real estate foreclosure auction taking place on a home which was about to be sold for the amount of spare money in your wallet would you buy it? The answer should be no because you would have no idea what you were buying, what it was worth, or if there was any equity in it.
The real money in real estate is made on the front end. Buy it right, below the actual current retail market value. Then decide if you want to sell it for a profit; hold it as an investment to rent, or make it your own home. Foreclosure investing has always been fraught with risks -- decrepit money pits, troubled tenants who refuse to clear out. But rather than creating more buys, the torrid market of the past five years has added a whole new level of risk by leaving fewer genuine deals available for thousands of eager new investors.
2006-11-10 00:31:09 · answer #3 · answered by JFAD 5 · 1⤊ 0⤋
I have in fact purchased homes in foreclosure.
All good processes and experiences.
Pros: a) many times a better purchase price
b) lender may refinance
c) lender may refinance with NO closing costs
d) lender may finance with NO points paid
e) lender may NOT require a new appraisal
f) the negotating is wide open - they pay the title opinion
Cons a) Not a one that I can recall ! ! !
If you are looking for this type of purchase, call home lenders in your area - banks, etc. And also call the Master Commissioner in your county. That is the person that conducts these sales usually at the court house steps. Literally.
Good luck.
2006-11-10 22:39:36 · answer #4 · answered by chey_one 3 · 0⤊ 0⤋
Benefit: Cheaper to buy, Drawback: The house could have problems.
2006-11-10 00:59:48 · answer #5 · answered by Mariposa 7 · 0⤊ 0⤋
Pros- price is negotiable because banks have no emotional attachment to the property
Cons-have to to do thorough research, title searches, C/O's, must purchase all cash, alot of expense to bring up to market value, must have good networking team to find good deals
2006-11-10 00:45:13 · answer #6 · answered by tianaramal 4 · 1⤊ 0⤋