i want to buy a house, what does foreclousure mean?

Question

i 've been looking to buy a house, but i understand that a foreclousure house could be more economic.
is this true?

Answer 1

In the last few years, if someone (anyone, a homeowner, an investor, a bank, the government) had a house worth $100k, they would want to sell it for $100k. Sometimes, buying a foreclosure can be a good deal.

To get a good deal, you need to find a house that other people are not going to offer more than you are willing to offer. It also must NOT be so messed up that you will need to spend big dollars to make it livable. As a whole, I call this "Buying a house with the right things wrong."

Unfortunately, there are investors out there looking for these same houses. What you can do is this - find the house before the investors do, and quickly get it under contract, or if you're buying to live in, then find houses that give priority to "owner occupants" over investors. The best opportunity I've seen like this are the HUD owned houses (they don't let Realtors call them "foreclosures" in our advertising).

Again, find a house in a neighborhood you like, listed at a price within reason, that has the right things wrong - good and ugly, but not really expensive to fix up. The best deals are usually in the wintertime (from Thanksgiving to Christmas), and HUD is also giving a $2,500 bonus to the buyers and $500 extra to the Realtors until early January.

Although statistically the best deals are in the winter, God gave me mine in July.... but He gets to break rules when He feels like it.

Answer 2

A foreclosed home means the owner could not keep on mortgage payments anymore and had their house taken away from them. They can be a good deal, but make sure you have the house appraised by at LEAST one person before you buy because there may be a ton wrong with the house and it wouldn't be worth the effort to make it livable. Often, people who have their houses foreclosed on can't afford maintenance, either... and things are let go that homeowners would normally take care of. Once these problems are ignored for years and years, they can make really big problems!

You can get a good deal, but buyer beware!

Answer 3

A foreclosure is when a loan doesn't get paid well enough for the lender to keep the loan open for the buyer. Sometimes a foreclosure home can be bought for under the market value, depending on the market and how much is still owed on the home. You should look at all available homes in the market to find your best home, which may be determined by best pricing, or by other considerations as well, such as condition, location, amenities, etc...

Many homes that went to foreclosure aren't well cared for because the former owners didn't have the funds to maintain them well. Be sure to get the best possible inspection done and watch for mold, shoddy repairs, wear beyond well cared for homes, etc...

Answer 4

Yes, you'd probably be able to negotiate a better price because foreclosure means the bank has stopped the owner's credit and is selling the house out from under them to repay the mortgage, as they haven't been able to make the payments. Their sadness will be your gain. Unfortunate, but that's the way of it, I'm afraid. The reason you may get a better price is because all the bank will be trying todo is recover the money thy're owed and won't be too interested in making a profit as the profit, if any, goes to the owners after the debt and costs have been repaid in full.

Answer 5

This is a home that the owners could not or did not make payments on and the lender took the house back. Most time this type of house needs work; however you normally can get them far below market value.

Answer 6

relies upon. you've were given a "no recourse" personal loan. maximum human beings, although, do not. If the known public sale brings a lot less money than you owe on the non-public loan, you owe the version. relying on the sources, you may each from time to time locate someone who will pay off the non-public loan to purchase your position. you would want that, and so would the business company, yet once you're "the incorrect way up" as you recommend, that's difficult to locate someone to do this. in case you owe a deficiency and examine no money, the business company would finally end up writing it off. seek for suggestion from with your banker and word what you may exercising recurring. foreclosures is a actual soreness for them, and that that they'd favor to do even if is a chance to ward off that. If not some thing else, ask them if you're able to do some thing voluntarily which will keep them criminal expenditures.

Answer 7

forclosure means the bank now owns the house becouse the last owners were not making thier payments.buying a forclosed home is recomended becouse it sells for less than if the owners were to sell it becouse the bank is just looking to get the balance that is owed.i bought my first home in 1999 for only $105,000 becouse it was a bank owned home and then i turned around 14 months later and sold it for $147,900 and was able to put 20% down on my current home.

Answer 8

A house that has been put under forclosure is one that has been reposessed by the government or bank for defaulting on the home loans. It is usually cheaper because they are trying to get rid of it as fast as possible.

Answer 9

When a bank forecloses on a house it means that the mortgage was not paid and the bank had to take the house.

Answer 10

a foreclosed property is one that has been repossessed by the lender for non payment. sometimes these are very good buys, however the condition should be a concern