A first look at bank foreclosure homes, your thoughts please?

Question

I am not looking to buy cheap, just better priced, and near where I work in Miami Beach, Florida. A friend suggested getting a list of bank foreclosures from an agent, comparing them with other listed homes in the same area, and said that at least I could be sure the title to each would be "clear".
I have enough capital and credit to buy a couple of units, one to rent out.
What other advantages is this market likely to offer me?

Answer 1

Purchasing REO directly from a bank is one of the most popular ways to buy a foreclosed property. And there's plenty of competition so you may find it more difficult to get a property below FMV at this end of the foreclosure chain of events, though not impossible in some counties. The advantages over other foreclosures are that the bank will clear the title and there will be no previous homeowner or tenants to be evicted.
Another advantage a bank owner has is financing flexibility. It's really worthwhile the buyer negotiates around the four factors; price, downpayment, rate of interest on any mortgage offered, and closing costs. Don't be shy in giving your reasons why the bank should lower the price.
And I agree wih one of your expert answers, for the type of property you have indicated, HUD homes could be of great interest to you.
You can find both at the source I have quoted.

Answer 2

I don't like doing bank foreclosures, because the banks have so many bidders, that they will invariably get more than their asking price every time. I prefer a different approach...HUD owned properties. Go to the website www.homesales.gov and you can search by city for HUD and VA owned properties. Usually, they come with built-in equity, and have very few things wrong with them. Incidentally, I do loans in Florida, and have had a lot of experience doing HUD props. Shoot me an email if you want me to help you finance your business venture.

Answer 3

There are no bargains in bank foreclosures and certainly no need to pay for any lists. Banks are not stupid - they want as many bidders as possible and are eager to advertise foreclosed properties and use brokers. There are always lots of bidders, and I have never seen one go for below market. The real problem is that foreclosed properties usually have not been maintained and have large rehab and fix-up costs and often.... hidden, expensive defects.

Answer 4

foreclosure properties could nicely be a large funding or a huge lost in case you do no longer pick properly. I even have purchase 3 foreclosure properties interior the previous. 2 of them ensue to be my accepted properties and that i'm nevertheless living interior the foreclore abode. foreclosure properties are plenty greater reasonably priced than regularly occurring ones, yet you're able to desire to look with regards to the valuables to work out if there are any substantial or minors that could desire to be restore. Set a decrease to how plenty you may restore the valuables and do your math to work out in case you will make any earnings once you sell it. If the huge style would not tournament, then it is not well worth it. while you're unfamiliar and uncertain if the valuables is in solid subject such because of the fact the muse, then hire a house inspector that can assist you you. this is greater effective to unfastened a pair of 1000's then to unfastened 1000's of greenback and a waste of time. as quickly as you utilize an inspector some circumstances, you will understand what to look for next time and you will no longer even choose the inspector anymore. whilst finding out to purchase a foreclosure, this is the comparable technique as different properties, yet some lenders do have some regulations and stipulations which you're able to desire to shop on with. We set a decrease like no greater effective than $5,000 that we could desire to continually put in the abode, and if this is greater effective than that, then we will could desire to work out if it particularly is going to be well worth it, if no longer, overlook it. i prefer to advise you to objective national Lending Corp (NLC). They paintings with many many lenders national over 40 4 states. provide them a call once you want a private loan or merely merely want a prequalification. i prefer to advise you to get a requalification first before searching for properties so which you will understand your limits. and additionally once you write an grant, the vendor will required a letter out of your lender which you have been pre-authorized, so which you do no longer waste their time. NLC could nicely be reached at 414-702-1537.

Answer 5

Foreclosed homes are usually run down but some are good. The couldnt make any payments so they let the house be trashed and didnt maintain it. If you purchase one and want inspections done, all utilities will have to be turned on in your name and you will be paying for them.

You can get nice houses for cheaper prices but thats not always the case. Just make sure you look at the house and make sure the foundation/plumbing/electrical is all good or your going to spend a few bucks getting all that fixed.