I see several impressing commercials online, showing very interesting opportunities for buying big houses with low price. They are all classify under the "Pre-Foreclosure" category. I wonder if there is any hidden cost, commercial tricks or financial maneuver? is ist safe to buy these Pre-Foreclosure properties? Do I really own that house after purchasing, and can move inside?
2007-07-24 17:29:44 · 6 answers · asked by Dimoxi 2 in Business & Finance ➔ Renting & Real Estate
Far from safe or easy. They are talking only the tax lien nobody is going to give up a paid off house for a few hundred dollars. They will find a way even if they starve. You don't know how many liens and what the condition of the homes are. Very easy to lose your shirt.
2007-07-24 17:34:53 · answer #1 · answered by shipwreck 7 · 1⤊ 0⤋
The thing to be careful of is when you buy a froeclosed house it is "as is". You need to really check out the home. I would suggest spending the $100-$150 to have a professional give you their opinion. If you go to an auction there is typically a buyers premium up to 10% of the bid price. Do you r due dilligence call a title company and ask them to run a property profile for you on the property including recorded deeds etc. this will tell you quite a bit on the home, like sq. footage, debt on the home, when foreclosure notice was filed, if their are any liens on the property etc. Also, ask them to include comparables and send those to you as well.
2007-07-25 00:43:02 · answer #2 · answered by mike d 1 · 1⤊ 0⤋
Go to www.hud.gov. Click on house for sale. Click on your state. This will take you to the authorized seller of HUD homes in your area. That is where the deals are at. Forget those commercials. Go directly to hud. You can also click on houses for sale by various government agencies. The government guarantees the loan, and when the owner defaults, the government must pay the bank what they guaranteed. Then the govt., usually HUD, owns the house. If you buy a HUD house, you will definitely be the lawful owner. The former owner will have no rights to the property. Good luck and bring your handyman tools. You will need them.
2007-07-25 01:05:51 · answer #3 · answered by ? 3 · 1⤊ 0⤋
The fine print is that these houses aren't for sale yet, the bank doesn't have them, the sheriff doesn't have them, they are pre-foreclosure. The lender has started the process, but there owner has time to make the loan current. And then there is a redemption period where the lendee can make the the loan current, and you are out.
Foreclosures can be tricky, find out all you can before you commit to buying one in your area.
2007-07-25 00:33:39 · answer #4 · answered by godged 7 · 1⤊ 0⤋
For the most part yes, however, I would work with an expirienced agent and loan officer on pre forclosures, some things can get tricky. I have seen alot of average joes' jump in head first and get hosed.
2007-07-25 00:34:58 · answer #5 · answered by Todd 2 · 1⤊ 0⤋
im pretty sure those homes are not exactly in foreclosure yet.. with any home you buy you need to be careful and maybe contact a realtor before buying anything you see especially from commercials there is always more to it.. you know too good to be true..anyway i found some great home buying information online
http://www.danagardner.com/PageManager/default.aspx/PageID=2042833
2007-07-25 01:18:47 · answer #6 · answered by Pure Genius 3 · 0⤊ 0⤋