Is buying a foreclosure a good idea?

Question

My husband and I are looking into buying our first home. We have been looking into buying a foreclosure per someones advise. I am not sure how to go about doing it and I am not sure as to some of the language they use. Like we found a house that says suggested sales price is 123,000 and then it says Median price is 539,000. So are they selling the house for only 123,000. Like I said I am not sure how to go about doing this, anyone have any suggestions?

Answer 1

Foreclosures are historically not known for being taken care of. However, if you do find one that was taken care of, you can sometimes get a good deal since the mortgage company usually only wants what is owed on the home. If the home needs fixing up, this is where you need to be careful. When buying a home regardless of situation, always get a home inspection. A home inspection should inform you of any serious defects such as foundation. For any fixer up, get a trusted builder or someone who does remodeling to examine the home and get an estimate regarding any fixes and repairs. After this, you may realize the home is not so good a deal. If the figures work out, have fun remodeling the home to your taste.

Answer 2

If you're purchasing a financial institution owned estate (REO) there might be no liens that switch to you. The vendor pays for a name seek, however you need to pay for name coverage. If you're purchasing at the courthouse steps there are a few liens so that it will stay hooked up to the estate. Most of that data might be within the public files at your county clerk's workplace or on their internet site. A Tax Deed sale will in many instances have provision for the house owner to redeem the estate, regional legislation varies. If this is a foreclosures it's yours as quickly as you pay for it (often you have got 24 hours). If you buy a foreclosures at the courthouse steps you'll need to dossier for a Quiet Title, a authorized continuing that may take a few months to whole and calls for an lawyer. The lender will bid as much as the quantity in default, plus their price to foreclose. The lender can have an agent doing the bidding, and that man or woman will often allow you to recognize what their prime bid might be. If this is a financial institution owned estate you'll be competent to have a Realtor exhibit you the condo, have inspections performed, and so on. If you're purchasing at the courthouse steps you'll no longer be competent to peer the within or have inspections performed. Having stated all of that, I have bought a financial institution owned house ago and presently am ready to listen to if my bid has been permitted on a different. The financial institution is not going to make any maintenance, what you notice is what you get. The first condo I purchased used to be bought at slightly below part of what it might had been valued at if it have been in higher form & I did plenty of labor to the condo earlier than I offered it for 3 occasions what I paid.