Has anyone ever delt with foreclosure real estate?

Question

Is it actually possible to buy a home at foreclosure prices, and does anyone have experience with it or know how to start the process?

Answer 1

I have read the answers posted and I think that you are being presented a negative view of working foreclosures. Although the answers given have truth to them there are many positive aspects of purchasing a foreclosure.
It is possible for anyone to purchase a foreclosure with out a broker. It just takes research and practice.
First, you will want to learn all you can about the foreclosure and laws governing foreclosures in your state.
Second, you will need to find foreclosure listings in your area. You can do this through the county clerk or recorder, legal notices in the paper or a third party service that focuses on your area.
Third, research how to determine market prices, how to obtain a hard money loan (traditional loan and mortgages are generally not possible when dealing in foreclosures).
Fourth, do some practice runs. Pick a few properties, find out all you can, determine what you would pay at the auction and then attend the auction but do not bid. Not only will this acquaint you with the auctions but it also gives you an idea at how well you did at determining your market price.
Finally, go for it!!!

Foreclosures can be complicated. There are additional liens, condition of the property, possible eviction, and market values to keep in mind when bidding. But with practice and research there is no reason that the average person can not purchase a home in foreclosure on their own.

Keep in mind also that you don't have to wait for the auction. There are always pre-foreclosures and you can also contact the owner prior to the auction. Cut out the competition.

Good luck out there. And trust me, you can do it!!!!

Answer 2

You find out when the auction is. It takes place literally on the court house steps (outside, not in) and you show up with your cash in hand. You are only going to get foreclosure price if there are no other bidders.

Personally, I think you should bring an experience broker along. It will cost you 500-600, but it will be worth it. This all happens VERY quickly. If you hesitate for a second, while you are deciphering what is happening it will be OVER. Start to finish is just a few seconds and you will be up against serious investors.

Answer 3

In order to buy, you have to bid higher than the mortgage company who holds the mortgage and who foreclosed. You would have to know in advance the market value of the property so you don't bid more than it is worth. And you have to have the money or approval in advance for a mortgage or you'll get stuck trying to buy without a lender.

This is something better left to the pros. Often times people walk away from properties when they owe so much that there is no point in trying to continue to keep up the payments.

I once had a neighbor who worked in the mortgage collection office at a bank. Before foreclosure started, I would know what property was going to be available. I never found one worth buying.

Answer 4

It is possible to purchase foreclosed property at reduced prices. But as the saying goes, there is no free lunch. Often they need work - because the people that were in them knew it was going to be foreclosed so they did not worry about leaks, broken storm doors, damaged downspouts etc. Sometimes they even do intentional damage that must be repaired then. Individually it may be small stuff , but it adds up in money and time that must be spent to repair it. You often need to repaint, recarpet along with making repaire. You can make money, but don't think that you are going to become rich overnight without doing any work or expending any additional investment. It is not like these people on TV like to make it out to be. Just go in with your eyes open.