For a first time homebuyer without a ton of cash for major repairs, is a foreclosure generally not a good idea? Are they usually in terrible disrepair or is there a good chance we could find one into which we could move without lots of repairs?
2007-03-04 11:21:03 · 6 answers · asked by wifey 2 in Business & Finance ➔ Renting & Real Estate
The best ones are elderly individuals who have passed away without having paid off the principal balance of their mortgage. These homes are in excellent shape, and are being sold by banks/financial institutions at cheap. Sounds morbid, but it's a fact of life.
To answer your question; you just have to look.
2007-03-04 11:27:12 · answer #1 · answered by 1235 4 · 0⤊ 0⤋
It may take some time searching out the foreclosures but there are some homes out there that are not in too much disrepair. If you are handy and can do small repairs yourself, go for it - you will probably save a ton of money. You can get quite an education by looking and asking questions!
2007-03-04 19:32:08 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Foreclosures take cash and lots of it. Period. Some of them are deals, and some are duds, but they all take cash.
Mandatory, large down payments.
Unavoidable carrying costs prior to settlement that could be extended against your wishes.
No right to cancel without losing your down payment.
Hidden liens or title defects.
I've presently got two I'm flipping - one's in great shape and one's in disrepair (they both took lots of cash).
Grandma probably loved her house, but she probably didn't have the money to properly maintain it in her older years, and she almost certainly didn't do any updating.
If you're not trying to flip the house, you can probably save money buying a foreclosure vs. retail, but if you're inexperienced, there's a high probability that you'll get hurt.
Some investors will buy foreclosures and then flip them for below retail. (Me.) This might be the better thing to look for because the investor will probably have already taken possession (not easy sometimes) and you'll actually get to see the house before buying it. It's less risky.
2007-03-04 19:54:29 · answer #3 · answered by tax_man_cometh 2 · 0⤊ 0⤋
Use a good realtor - they are well worth the price & the seller really pays for them anyway. There are TONS of people looking for good deals in foreclosures. It can be a good way to go if you know what you are doing, but there are some risks involved.
You might want to look for corporate relocation homes. This is where an executive is transferred and the corporation buys the house for them. Often the corporation just wants to get rid of the property fast, and some good deals are there to be had.
2007-03-04 19:27:43 · answer #4 · answered by jimmyjohn 4 · 0⤊ 0⤋
It really depends on the foreclosure. Be prepared for the unknown. I spent almost a year looking at houses, in my price range I came to discover many were foreclosed homes. I came across a GREAT house, it's a 1 bedroom, but I'm going to convert it to 2 bedroom eventually, I got the house for $20,000. Just keep looking and you'll get lucky. It's not going to take a lot of money to fix this house up, paint, some cleaner, and a good carpet cleaning and I got a ni house. I just closed on it friday.
2007-03-04 20:46:52 · answer #5 · answered by Anonymous · 0⤊ 0⤋
actually depends,,,here in nc,,,high forclosures on new homes,,,so usually deal,,,,but older homes,,neglected,,,,dud.
2007-03-04 19:40:44 · answer #6 · answered by rhardfrumnc 4 · 0⤊ 0⤋