What are the pros and cons of the foreclosure auctions in New York?

Question

Will first time home buyers be in over their head trying to buy property at a foreclosure auction in NY?

Answer 1

First of all before the bidding start the person holding the auction is gonna say all that want to bid on this property I must insure that you are qualified to bid therefore you must produce evidence of cash, cashier check or money orders for the minimum bid.

This is not a pre-approval or pre-qualified letter, a bank statement that indicate you have 5 million in the bank or a letter of credit. You don't have 30 days to get financing in order.

So if you can not come up with those kinds of instruments for payment then yes you are in over your head.

The best time in my opinion to purchase a foreclosure is when the property is in a pre-foreclosure stage and the home owner is still in the property.

You can make a deal with him/her, look at the property for repairs if any. Find out how many payments he is behind to include any fees. You can find out how much the owner want to sign over any equity that he might have in the property.

Add all those together with the amount of monthly payments you will have to make in order to fix the property and sell it. You will then find out if this is a property in which you can make a profit.

I hope this has been of some use to you,good luck.

"FIGHT ON"

Answer 2

Pro's = may get undervalued property, good investment for handyman
Cons = most foreclosures are in bad shape and do not quailfy for bank financing meaning you must have cash and pay within 30 days, you are responsible for additional liens on the property (back taxes, second mortgage, mechanic liens etc do a title search), you purchase property as is and can have extensive damage, you are bidding against other people which will drive up the price.

Answer 3

experts - tremendous go back on your funds if each and each and every of the celebs and moon are aligned properly. Cons - Like somebody else reported, Murphy's regulation. in case you may imagine it, that is going to happen. in case you'd be doing this on an customary foundation, you pick to understand the domicile extra perfect than the subsequent guy so that you'll end bidding on it in the previous you're in too deep. the perfect time to purchase the foreclosure is even as that is pending, no longer on the courtroom domicile step except you've been in a position to get a peek contained in the domicile (criminal or illegally). once the domicile hits the marketplace the business employer will be inquiring for an arm and leg.