Buying repossesions?

Question

I was on forclosure. com and I seen repossessions for $1000 and the market value $200,000. Do I pay the repo amount or the market value or both???

Answer 1

In general, buying a repossessed (foreclosed) property is similar to buying any other real estate. The price you pay is whatever the seller is willing to accept. You must be aware of any encumbrances (liens) against the property, which must be cleared for you to take clear title to the property. Such liens may be for one or more mortgages, unpaid taxes, and a host of other things. My guess is that, if someone is advertising a $200,000 property for $1,000, you as the buyer are expected to pay the costs of any outstanding liens before you take title. Do a thorough search of the property title. You may well find that the outstanding liens far exceed the value of the property involved.