market value and get their money back? everyone says you can get equity if u buy a house like that, but why would the onwner sell it to someone so low when they can sell it for the market value?
2007-02-26 12:34:26 · 6 answers · asked by beach_babe971 2 in Business & Finance ➔ Renting & Real Estate
If a person has alot of equity, they CAN sell quickly for a little less than fair market value. Unfortunately, most people in foreclosure don't have alot of equity - many times, the house isn't worth what others of it's size are worth due to condition (if they couldn't make the payments, they probably didn't do the maintenance either), or they simply borrowed too much.
2007-02-26 12:50:07 · answer #1 · answered by teran_realtor 7 · 0⤊ 0⤋
Every property that is foreclosed on means that someone lost money. Why and how they lost money can vary. I see a lot of new homes that get foreclosed on because people paid too much for the house. They thought the area would change or for what ever their reason may be, but the house ends up being worth less than they paid.
I have seem property were the person bought a brand spanking new condo for $200k and the comps are only around $120k. No bull. I do not understand what they were thinking, but they get foreclosed on because the bank will not refi.
Another thing I see a lot in foreclosure is investors/flippers over paying and/or over spending on repairs. They will buy a home at market value or more than put tens of thousands of dollars into repairs. This ends up meaning they cannot get their money back from the sale, and they have no money to hold or finish the repairs on the house.
I cannot tell you how many half finished foreclosures I have seen. It will always be a home that the materials are way too overvalued for the home. (IE: expensive hard wood floors in a $120k house.) They will spend all of their money on one or two projects then go broke.
But most foreclosures are dumps. They are not kept up, and are in serious need of repair.
2007-02-26 13:07:54 · answer #2 · answered by joe1max 4 · 0⤊ 0⤋
Depends what you mean by ' sell it to someone so low'. Do you mean if they let it foreclose? Or sell it privately? Sometimes they will sell it to someone who will make the payments, with an agreement to buy it back when they get back on their feet. If they don't buy back, the person will sell it (depending on the agreement) I guess, like a pawn shop. Most will just save the monthly payment for 6 months (average time to actual repo/foreclosure by the bank) and use it for whatever when they have lost the house.
2007-02-26 12:53:39 · answer #3 · answered by degroove 2 · 0⤊ 0⤋
they can sell it. Most just don't even know that though. The banks sure as heck don't advise you of your rights though. They make it sound like you need to move out the day of the sheriff's sale, even though in many places you have another 6 months to stay there.
Just one more way the average consumer gets screwed.
2007-02-26 16:46:11 · answer #4 · answered by Yanswersmonitorsarenazis 5 · 0⤊ 0⤋
The words of the abode fairness loan are which you have located a lien on the abode. you will not be able to sell your place to a distinctive individual untill each and all of the liens are payed. the desirable technique is to transform the debt to a private loan.
2016-10-16 13:46:41 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Probably in a hurry to unload it if they cant afford the mortgage.
2007-02-26 12:42:06 · answer #6 · answered by ebaychecker36619 1 · 0⤊ 0⤋