I have been watching late night infomercials claiming you can buy property for less on the dollar and more importantly for zero money down? How is this possible and does it violate any state laws for taking advantage of their situation?
2006-12-05 19:34:09 · 10 answers · asked by daylongcruz 1 in Business & Finance ➔ Renting & Real Estate
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2006-12-06 03:03:13 · answer #1 · answered by p3mofo 2 · 0⤊ 0⤋
I don't think so. Most foreclosures are handled by the county sherrifs department.
State laws vary from state to state, but the biggest obsticle is the bank.
It is possible to buy a house in general with no money down. You will typically have to take out 2 or 3 mortgages to do so or have to purchase PMI (insurance in case you default on the loan). Mortgages also require an assesment of the property.
Forclosures typically require money down once you purchase the property to "hold" it (the county I lived in required 10%). The county will then usually give you a few days (some may give you up to a week...the county I used to live in gave you 24 hours) to come up with the rest of the cash. If you do not pay the bill, the property goes up for auction again and you lose your down payment.
Put the two concepts together... Changes are the county will require cash (or another secured form of payment) to purchase the property, and this will usually be due within days. The bank wants to evaluate a property before they issue a loan against it to make sure they can recover their money (and this takes time).
Regardless, you will probably have to provide a down payment to pay to the county. Even if they don't, the biggest problem then is to find financing fast enough.
If this is something you are interested in, I would suggest finding a mortgage broker you trust and see what they can come up with for you.
2006-12-05 19:54:34 · answer #2 · answered by Slider728 6 · 0⤊ 0⤋
It is possible, but difficult. You could approach a person at risk of foreclosure, and offer to take over his ownership of the property and let him walk away, and if there is no equity in the property, it might be sensible for him to do so. But that situation is rare, and at the very least the foreclosee will want some cash to move out and get established elsewhere -- and if there is actually some equity left in the property, it would be sensible to give it to him. You cannot buy a property for no money at a foreclosure auction -- you have to pay the entire price, on the spot, in cash.
2006-12-05 19:47:53 · answer #3 · answered by Anonymous · 0⤊ 0⤋
It is possible and it's legal. Some states have laws in place to help protect homeowners from losing their homes. For example, if I am buying the equity of a home in California, I have to give the owners a special contract which gives them 5 days to think about this contract. However this stupid law ends up hurting the home owners because the government thinks that we're too stupid and dumb and by giving us 5 days, we'll be able to make wise choices, when in fact, everyone is screwed until the 5 days is up.
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Pennies on the dollar is buying the equity in a home. Buying zero down is usually done by using other people's money (such as a hard money lender) or selling your option to purchase the home to another person.
Good luck.
Regards
2006-12-05 20:01:52 · answer #4 · answered by Anonymous · 0⤊ 0⤋
No. 999 times out of 1,000 you need cash. Nothing is impossible but it is difficult to take advantage of foreclosures with no cash. the only way this will work is to find a property no one else has any interest in and in that situation you will be paying too much! So what is the point of buying a bank owned property if you have to overpay?
2016-03-13 03:56:21 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Is it possible? Sure. Is it likely? About as likely as making a million $$ on slots in Vegas. There are a thousand people selling schemes to make $$ on real estate (including someone who answered this question). In my opinion none of them are worth more than reading a book. As a general rule distressed properties in good condition sell for 10% or so less than comparable non distressed ones; properties in wrecked condition can sell for much less, but then you've got all the problems to fix up.
2006-12-06 05:47:45 · answer #6 · answered by Anonymous · 0⤊ 0⤋
you can also approach the homeowner while in PRE foreclosure, alowing you to purchase the house 100% financing, then flip it, you can usually get the house at 30 to 60% off.
2006-12-06 02:46:39 · answer #7 · answered by Anonymous · 0⤊ 0⤋
I don't think anyone can truly tell you
2016-08-08 20:53:43 · answer #8 · answered by ? 3 · 0⤊ 0⤋
VERY TOUGH ... watch out with the infomercials..their business is SELLING YOU their packages...
2006-12-05 19:39:42 · answer #9 · answered by MeInUSA 5 · 0⤊ 0⤋
nah dont believe that, most of these deals are cash only deals.
2006-12-06 22:47:10 · answer #10 · answered by Anonymous · 0⤊ 0⤋