First of all, what is distressed property anyway? Is it just property that has been seized because the owners haven't paid their mortgages?
Secondly, what do I need to have in order to purchase distressed property? I don't want to buy, fix it up, and sell it; I just want to buy it for myself (fix it up of course).
2007-01-10 10:46:57 · 3 answers · asked by prettycute4u62040 4 in Business & Finance ➔ Renting & Real Estate
Distressed means that the property needs work or is undesirable to purchase at market value for whatever reason. Most foreclosed properties need cosmetic work or more. In my opinion, the prior owners took care of their homes like they did their bills: irresponsibly.
Your local Realtor(r) can help you find these properties. If you don't know one, personally, I can fix you up with an agent in your area that you will find a common thread with. You will need an agent to purchase a HUD home...HUD (government foreclosure) is good for an owner occupant because they give precedence to owner/occupants over investors. Contact me.
2007-01-10 12:26:39 · answer #1 · answered by sherockstn 4 · 0⤊ 0⤋
I wouldn't categorize a foreclosure (already owned by the bank or HUD or VA) as a distressed property. Mainly because they can sit on it (sorry Fonz...) until they get a buyer that will pay it's actual value.
I would say a distressed property is one that can be bought for less than what it's worth, due to something about the property itself, or the owner's situation. This could be a situation where the owner is being transferred, or owns this rent house but he's out of state already - so he can't fix it up himself to get a reasonable price for it. You can buy it at a price so that even after you fix it up, you still got a good deal. Or maybe the owner needs money FAST to pay off a DUI or some other such bills. An owner with failing health may let a house go for cheap, just to move on - or maybe a divorce sale.
There are many situations that could result in a house being a "distressed" property.
To buy one - you need the same thing you'd need to get a "non-distressed" property - either cash or a loan.
2007-01-10 12:03:49 · answer #2 · answered by teran_realtor 7 · 0⤊ 0⤋
These guys can help you line something up, http://www.choicefinance.net/foreclosure-listings.htm
2007-01-10 12:01:23 · answer #3 · answered by Anonymous · 0⤊ 0⤋