I want to buy a house but they are way to expensive and i dont want to throw my money away with renting... i have been looking in to foreclosed houses and i just want to learn alittle more about the whole thing.
2007-01-19 06:25:29 · 7 answers · asked by thoughtless 1 in Business & Finance ➔ Renting & Real Estate
YES: Foreclosure is a good thing. A foreclosure occur because for some reason the mortgagor (the payer) does not fulfill the obligation of the mortgage, (Pay).
The financial institution wants and needs it money. It puts the property up for sale at whatever they can, to get the loss covered. The institution in not interested in the value of the property, their interest is not having a loss.
I paid 80% of the value of my property by mortgage, now that it is paid down to 77% of that value I need to protect myself from loss. Real estate has gone up in value, if I were foreclosed on the outstanding mortgage would equal 50% of the current value of my property. You would be able to buy my house for 50% of the value of the properties in my neighborhood.
Many times the property we see for sale have been bought (at foreclosure) by the people that is selling it to us. Because we did not know, or understand foreclosure we bumble along happily.
2007-01-19 06:57:27 · answer #1 · answered by whatevit 5 · 0⤊ 0⤋
Foreclosure is when the bank or finance company takes back the property for non payment. Most people that know they are going to be foreclosed on don't take very good care of the property and may even damage it. You just need to be very careful and look everything over real good before you buy it, but you can find some real steals by buying a foreclosed property.
2007-01-19 06:36:05 · answer #2 · answered by Gordon S 5 · 0⤊ 0⤋
Great! You understand that by renting you're paying your landlord's mortgage! That being said, it appears you realize that home ownership is an investment. Interest up to 100% of the home's value is deductible and you'll build equity over time. I just purchased a foreclosure property because I'm looking for an investment. You need to realize 1 thing when purchasing a foreclosure property... You are buying this property AS IS. There will most likely be problems (carpet, flooring, appliances, etc...). The bank will not cover these costs. You'll probably need some reserves to make minor repairs. You can also refinance (make sure your loan has no prepay) in 6 months to a year and pull a little bit of the equity out of the home for fix ups. With some basic improvements, you'll have yourself a beautiful home with instant equity!
2007-01-19 08:11:48 · answer #3 · answered by MDHanner 1 · 0⤊ 1⤋
a foreclosed prop is 1 that has to be sold because of debt, you can get a great deal if you do the research on the prop, foreclose homes are often the prop of choice for people who flip houses
2007-01-19 09:05:38 · answer #4 · answered by barry h 2 · 0⤊ 0⤋
a foreclosure just means that somebody got kicked out, or abandoned, a house because they couldn't pay; it's perfectly fine to buy one just beware that many foreclosure need a lot of repairs; they typically do not have the best owner history.
2007-01-19 06:35:41 · answer #5 · answered by KJC 7 · 0⤊ 0⤋
Well, yes they can be a good investment, it just requires a lot of research.
Consider purchasing an REO meaning it has already passed the foreclosure auction part and you can buy directly from a bank---- meaning--- they will help you finance it (normally).
Check this site out: http://www.foreclosure.com
2007-01-19 09:29:45 · answer #6 · answered by Anonymous · 0⤊ 1⤋
http://www.choicefinance.net/foreclosure-listings.htm
2007-01-19 09:38:14 · answer #7 · answered by Anonymous · 0⤊ 0⤋