Also, would you recommend buying a house that was foreclosed?
2007-07-12 06:32:13 · 14 answers · asked by NyNy 3 in Business & Finance ➔ Renting & Real Estate
Owners got in over their heads, lost jobs, delinquent taxes in some states.
If you have a good atty, I'd go; but if you were buying a first family residence, I'd pass. You just aren't going to save that much in this day and age.
2007-07-12 06:35:36 · answer #1 · answered by wizjp 7 · 0⤊ 1⤋
A home normally becomes foreclosed when the owner defaults on the loan. The owner is usually pretty far behind on payments before this process is started.....Buying a foreclosed home can get you a pretty good deal sometimes but not always. Once the home is FC the bank or mortgage company owns the property and the sale price is about whatever the current loan amount was. For instance, say the home is valued at $150,000 but the loan amount is $100,000 you could probably buy the property for close to the loan amount!! Hope this helps..... I am a licensed real estate appraiser if you have any more questions.
2007-07-12 06:44:18 · answer #2 · answered by Rachel N 1 · 0⤊ 0⤋
99% of the time, a home is foreclosed due to failure to make the required mortgage payments by the current owners. There is nothing wrong with buying a foreclosed home. However, be aware that nearly all foreclosures are sold 'as is', so you have no recourse against the lender after you purchase. You are allowed to have a professional inspection done so that you are aware of any defects in the property which might change the amount of money you offer.
2007-07-12 06:39:40 · answer #3 · answered by acermill 7 · 1⤊ 0⤋
Lots of reasons:
1. Owner couldn't make mortgage payments (either due to illness, divorce, bankruptcy, or death in family, or just plain ol' shiftlessness).
2. Owner didn't make tax payments.
3. Values in area took a dive, and owner owed more on house than house was worth, so s/he walked.
The majority of the time, a foreclosed house will also have a great deal of deferred maintenance. If they didn't have enough money to make the house payment, you can probably bet that they haven't had the HVAC serviced, the roof replaced, etc., etc. So it's a judgement call on your part if you are willing to run that risk of hidden "surprises".
Most foreclosure are sold "as is", without any warranty. You should be able to get an inspector in there (at your cost) to let you know what shape the house is in, and decide if it's worth it to you.
2007-07-12 06:41:16 · answer #4 · answered by Anonymous · 0⤊ 0⤋
The bank forecloses on the loan because they have determined you are unable or unwilling to make the payments. There are many reasons why someone would fall behind. Keep in mind that a bank is not going to foreclose just for late payments, or even for missing a payment. It'd be significant money owing over time.
2007-07-12 06:40:46 · answer #5 · answered by Anonymous · 0⤊ 0⤋
People foreclose on homes for a number of reasons. The reason is because they cant afford to make their monthly mortgage payments to the bank anyomore. There are many reasons why that might happen.. like..
Divorce, medical problems, death of family members, loss of job, higher interest rates on adjustable mortgages.. and the most commen reason..simply getting into a home you couldnt afford to being with.
As far buying a foreclosed home.. sure why not? As long as the price seems fair.
2007-07-12 06:36:41 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Banks foreclose on a house when the owner can't pay the mortgage payments.
Forclosures can be good bargains, but they can also be traps for the unwary. Always be sure to have the house inspected before purchase and make sure you are approved for a reasonable mortgage.
wizjp is clearly not a NYer. Foreclosures in NY can be waaaay under market value (market value in NY being ridiculously inflated compared to national averages).
2007-07-12 06:36:47 · answer #7 · answered by TheEconomist 4 · 0⤊ 0⤋
Foreclosed means that the house has a lean on it... or the owners could not pay their bills so the loan company is going to come and take it away. Buying a forclosed house is fine, and sometimes less expensive than one that is not because the finance company or the owners want to dump the property as soon as possible as not to loose any more money. Good luck house hunting!!
2007-07-12 06:40:55 · answer #8 · answered by shadowsthathunt 6 · 0⤊ 1⤋
Homes get foreclosed on when the buyer quits making their payments.
I would pass on buying one. If it is in good condition, then the bank is going to want market value for it, not just what the balance of the loan was. You may be able to buy one for cheap because the bank is only wanting to get their money back out of it, but it is going to be in bad shape and require some repairs. Unless you are able to do the repairs with free (ie your own) labor, then you aren't going to save any money.
2007-07-12 06:36:00 · answer #9 · answered by sortaclarksville 5 · 0⤊ 1⤋
Since your lease expires on March 1, you should certainly be able to remain in the property until your lease is expired. It's more than a 'simple legal matter' if the property is already scheduled for a public auction. When the property goes under new ownership at public auction, the new owner will have to provide you a thirty day notice to vacate the premises, and that would not take effect until your lease is expired anyway.
2016-05-20 22:09:44 · answer #10 · answered by cherie 3 · 0⤊ 0⤋
A home goes into foreclosure when the tenant can no longer pay the mortgage. Its fine to purchase a foreclosed home.
2007-07-12 06:36:02 · answer #11 · answered by Anonymous · 0⤊ 2⤋