How do you go about finding and buying a foreclosed home?

Question

Are there any negatives in buying a forclosed home?

Answer 1

A great book to buy that explains EVERYTHING you need to know in plain English is the Complete Idiot's Guide to Buying Foreclosures. You can get it on Amazon either used or new, but you might check the library to see if they can get it for you.

Answer 2

Usually the foreclosing folks will have a list. In one city I found that the list was given to friend investors first, then the general public. Then that city wised up and started selling the foreclosed houses at market rate. Just call your city and county governments and they will let you know who to call. You know that when dealing with calling the government you have to have lots of patience. You can also talk to banks on whom they are foreclosing on. You can also make offers to people that are in the process of losing their homes. They may be trying to sell their home and get some equity out of it and sometimes you can assume their loan. Just ask everyone you think of and if they don't do what you want, ask them do they know who does. The down side was that owners had one year to come back and pay what they owed plus any money you had put into the property. That may have changed but when you get the list, ask that question. It could be different in different places. Hope this helps.

Answer 3

When you buy foreclosed, you buy 'as is'. However, that proviso does NOT prevent you from asking to have an appropriate inspection done so that you know what you might be buying, replete with its problems. Generally speaking, however, lenders will not make any repairs. They sell without warranty, and you buy what is sitting there (or NOT there).

As well, do not expect to get fantastic deals on such properties. It seems to be a common myth that these are a steal. That is not normally the situation. I've seen foreclosures mostly sold at market value, or very close to it.

These lenders have already taken a kick in the backside, and are looking for as high a sale value as they can possibly get for these properties.

Answer 4

Watch your newspaper they have to publish them or call your county court to get info. The negatives: A lot of times people are mad at the bank about loosing their home and they trash it and do a lot of damage to it. Most of the time you cannot see the inside before buying. Be prepared, the bank might be at the sale and bid your price up.

Answer 5

In the state where I live you can look them up On Indiana forclosuers or sheriff sales, usually get them cheaper than if they where on the market.