My husband and I are looking into buying a house. People suggested to buy a foreclosure home because it's cheaper than a "normal" home. Is it true, that it's cheaper or are there any additional costs that I wouldn't have with a non foreclosure home, so I'd end up paying more? How do I find foreclosure listings? I looked online and found a bunch of foreclosure listings but you have to register and pay in order to look at them.
Thanks for your help! :o)
2007-07-30 05:52:57 · 9 answers · asked by pearl_682 3 in Business & Finance ➔ Renting & Real Estate
You get what you pay for.
Usually foreclosures have "issues". If you and your husband are willing to put in sweat equity you can build significant equity in a short period of time.
If it is just a few bucks go ahead and pay to get the info, it could net you 10's of thousands in the future.
2007-07-30 05:57:22 · answer #1 · answered by fkd1015 4 · 0⤊ 1⤋
I registered with RealtyTrac.com for free..and at the end when it asks if you want someone to contact you--just click NO....i get 2 emails a day listing all the new foreclosures in the area i am interested in.
you can also go to the court house records or tax dept ---they will have a listing and they should also have when the trustee sales are being held.
you can also get a listing from local banks and local lending institutions.
other costs.?...yes, you will have to do some digging to make sure their are no leins on the property and that the property is not defaulted on its property taxes...these will be items you might have to pick up.
it would also help you to have a licensed real estate agent..as she can negotitate down for you...she is aware of what the local market in your area is doing from day to day.
you will also need to have a home inspection, so that you are aware of any problems (yes - you will have to pay)
you can find some really good deals, but remember you might run into some money pits because people were angry when they went into foreclosure and did so much distruction...
good luck - be careful and take your time i am sure you will find what you are looking for
:)
2007-07-30 13:05:20 · answer #2 · answered by Blue October 6 · 1⤊ 0⤋
I'm going through this with a client right now. You have to do a lot of digging... and I mean A LOT.... you have to look at a lot of homes as well.
With bank owned properties you can end up losing rather than gaining. Most of these homes need a lot of work so you end up putting more into it than its worth. I visited 3 foreclosed homes yesterday. They were all disgusting and needed more work than it was worth. For example, one property was priced at 100K. There were holes punched in the walls, writing on the walls, stains on the carpet, broken windows, floors needed to be pulled up, etc,etc,etc. Similar houses that don't need the work sell for 130K. So, it wasn't worth it. A lot of these homeowners trash the house before they leave.
Homeowners have usually about a year to sell or pay the mortgage in which they (if they are smart) will put the home on the market.
For example, a friend of mine (long story) was in preforclosure. She had 6 months to sell her home. So, it was worth 229K and we listed it at 199K for a quick sale. The home didn't need ANY work. We ended up selling for 190 to get her out. That is a better deal than an actual forceclosed home. Most of these foreclosed home have little to no equity when they are actually foreclosed. That is why they don't list it. They just let it get taken because there is really not much they can do.
Yes, the good deals are out there. It may or may not be a foreclosed home. But, don't close your options because you can find a great deal without the home being a foreclosure. If it was that easy everyone would do it.
Just be patient and hire an agent.
2007-07-30 13:24:13 · answer #3 · answered by Lainie L 3 · 0⤊ 0⤋
I bought a foreclosed home and was very lucky to find what I have. I asked my agent to show me homes that were in a certain price range but didn't have to have too many things done to it in case I decided to flip it. I saw several homes in different stages that I liked. i even looked at some that had upgrades but needed actually more "real" work done to them meaning they had the cosmetics taken care of but structural was a different story.
There are some great buys out there you just have to physically go out and look at each one. Once you decide on what you really want and know what would be easy to fix or replace than get a home inspection(upfront cost) done. This will tell you what you need to know.
You can actually go down to the courthouse and ask the clerk where the foreclosures list is. When you find the list, write down the numbers of the houses that you are most interested in. Take those numbers back to the clerk and have them pull the files. This will give you more information than normal but you have to do the footwork if you want to find something that you both will end up liking.
Got my home for $29,800 less than it was appraised at in 2006. Property taxes were reassessed for my area so my taxes went up $130 but considering that I paid so much less than the comps and my neighbors homes (one month and one year ago respectively)that is an issue I don't mind paying.
There is a house two doors down and across the street which is listed at $61,300 more than I paid.
You decide........
2007-07-30 13:09:24 · answer #4 · answered by Anonymous · 0⤊ 0⤋
I'd call a Real Estate Agent, they can get you into foreclosures. There are not more fees that you pay up front necessarily. But you need to know that sometimes it takes as much as a year for a house to be foreclosed on. Which means for a year or a little more people have not been making payments, and they were aware they were losing the house. Which in general I've noticed when people know they are going to lose their home they do not take care of it as well as normal. Meaning, the carpet may have more stains than usual, the appliances (stove, diswasher, disposal etc) may not be functioning like normal. So you are going to be looking at repairs that may add up to what it would cost to just buy a house that people have loved, taken care of and are just wanting to move. Real Estate Agents can show you these for free, but I'd honestly suggest that you look for a house that is not going through foreclosure. Oh, and if you do buy one this way, you'll need to be preapproved BEFORE making an offer, and you'll have to submit a letter from your lender saying that you have been preapproved for a loan and can afford to buy the house. Also, unlike with a regular transaction you will not be able to ask for repairs to be done to the property before you purchase it. I've helped people buy foreclosures and regular houses, so it is possible, and some people are happy with them, just be sure you really check it out!
2007-07-30 13:02:25 · answer #5 · answered by ... 4 · 2⤊ 1⤋
As others have stated, you get what you pay for. Homes which have already been foreclosed upon are normally listed with a real estate brokerage firm. You can get some underpriced homes out there, but you can also expect to find maintenance issues, no appliances, missing light fixtures, and a host of other issues. Those who cannot afford the mortgage can't afford maintenance either. And sometimes they strip the properties naked on the way out the door.
If you are wanting to purchase at the foreclosure auction, be aware that the lender will also have someone there bidding on its behalf. If the price of the property does not exceed what the lender wants out of it, they 'buy it back' and them move it to real estate brokerage for disposition. If you ARE successful at the auction, be prepared to have at least ten percent down in cash or certified check at the auction, and the ability to come up with the remainder of the money in very short order.
2007-07-30 15:06:12 · answer #6 · answered by acermill 7 · 0⤊ 0⤋
You can get listings from your county courthouse. Something you should always make sure is that they don't have any other loans on the house. Sometimes it can be tricky because they say they are selling it for a certain price but then there are other loans on the property as well. So do your homework and everything about the property you will be able to find out at the courthouse.
2007-07-30 12:59:48 · answer #7 · answered by TMW 2 · 1⤊ 0⤋
Foreclosures have a lot more risk to them because you usually cannot go inside the house at all before purchasing. Also, you have to have the money outright to pay for the house. Right now, you should be able to get a normal house for less. In many areas, there are a lot of houses on the market and they are selling for a lot less than they used to be.
2007-07-30 12:57:07 · answer #8 · answered by Andrea B 3 · 1⤊ 1⤋
Don't miss out on what many people are doing to save up to 80% off your new home. Many listings available in this area! Now is the time to buy!
http://govntforeclosures.blogspot.com
2007-08-01 00:23:42 · answer #9 · answered by Anonymous · 0⤊ 1⤋