What is the best way to buy a foreclosed house? Is there any secret to it?

Answer 1

The best way to buy a foreclosed home at auction is with cash. Financing an auction home can be particularly tough. If you are buying a foreclosed home through a Realtor, then it is a good idea to work with a real estate firm that sells a lot of foreclosed homes so that they can give you a heads up on new properties that they just received in their office. You can also try to develop a relationship with some local lenders so that you may be able to find out about the foreclosures early enough so that they lender will make a deal with you early on.

Answer 2

First things first, a house that is foreclosed is actually a result of a particular individual or the past owner's house's being - unfortunately - closed.

The house's previous owner is then unable or no longer want to take that particular house back via releasing that house after paying the appropriate dues on its mortgage.

When such an event happens, the specific house is then overtaken by a financier, or the lender, mortgager, and is thereby put up as resale. This is in order to get one's money back via reselling that house via an auction, or by any other similar means.

Usually, the reason why foreclosed houses exist is the present owner of the house's present financial problems.

How would one find out about foreclosed houses?

Is there a specific way to find out where foreclosed house auctions are available? Believe it or not, houses that are foreclosed are usually advertised in the local media and the newspapers.

The agents of real estate also usually have vital info on houses that are foreclosed.

Also, county and local courts also have info on such houses and so anyone could advise anyone who needs such details on the foreclosed house deals that are currently available.

Is there a best way to buy a house that is foreclosed?

Believe it or not, it is through auctions that are conducted in court which is considered as the best and profitable way to purchase a house that is foreclosed.

The reason for this is that there are little risks when one buys through court auctions especially when the specific house is bank foreclosed by the Urban and Housing Development.

Is it good to buy a house that is foreclosed?

This questions always looms especially on those people that are first timers in the real estate purchasing field.

Believe it or not, a foreclosed house is actually less expensive compared to purchasing a normal and regular house.

Differences and discounts could range from anywhere from fifteen percent to fifty percent.

This therefore allows someone to pay a down payment that is significantly lower, thereby helping an average house buyer to be able to afford a particular house in the real estate booming market.

Also, it is a lot easier to finance such houses by one hundred percent in some of the cases.

Check and double check

Just like in any other decision, there are always advantages and disadvantages that come along the way.

What is important are that the following factors are considered and thoroughly checked prior to purchasing a foreclosed house.

What is the house's condition? Add to the house's cost its current tear and wear condition as such repairs could add up to its cost in the long run. Usually, the one responsible for fixing up the place is the house's buyer, at least in most of the cases.

It is also vital that a house inspection is conducted. This is because once a particular house is sold and bought, the deal has technically been made and is irreversible.

All in all, it is necessary that one take all precautions when obtaining all the pertinent info prior to purchasing a house that is foreclosed.

Always remember that when cautiousness and carefulness is practiced, the dream of having to own the house you have always wanted is clearly within reach. This could prove to be beneficial for you in the long run.

For listings of foreclosed house auctions, please visit http://www.real-estate-foreclosed-home.info

Answer 3

I bought a house that was foreclosed and bought back by the lender.
It was sold through a real estate office, just like any other house.
The good thing was all liens were satisfied and i got a good warranty deed, with no encumberences.
The bad thing was it was only about 15% off, but i was able to fix it up for much less than that.
And now the real estate market has tanked.

After doing it once, i have decided its worth it, and I would do it again, as long as you plan to live in the place for 5 years or more, you are in good shape....an understanding husband or wife is a MUST.

Answer 4

None whatsoever. Once the house has been foreclosed, it will be listed with a real estate agency for disposition. From that point on, it's like buying any other property, except that you are buying it 'as is', since the lenders do not generally pay for any needed repairs. Hence, you are advised to have any such property thoroughly inspected as a contingency to your offer to purchase.

If you are attempting to buy foreclosure at the public auction, have at least ten percent of the cash needed on hand the day of the auction, with the ability to cough up the remainder within days. If you buy at auction, generally there is no option to inspect the property first, so you're REALLY on your own.

Answer 5

Get to the people before it goes to auction. Work a deal with them directly by assuming their mortgage or taking over title and refinance it. You will have to pay their back payments so it stops foreclosure. If you go to the auction you will see that the same 4 guys buy 95% of the homes. They can spend millions a day be cause they are part of a investment group and know what they are doing. If you buy at auction you wont get to look into the house and could get ripped off. So as you can see knock on their door. You can get info on all the houses that are in foreclosure from a site or the county records office.

Answer 6

Well my question is where do you plan to buy a foreclosure home?? I live out here in northern California and out here, their are 100% finance available. Many of people prefer paying cash but who has 500k or more??? i don't!! So the best bid is if you live out here in California, do 100% finance. Some where else i don't know the lenders guide lines...

Answer 7

no , there is no secret at all , its like buying a new house again .. i mean its a new released house

Answer 8

You can get a wealth of information on the free forum at creonline.com.

Answer 9

with cash...

Answer 10

http://www.7secretstobuyhome.com/ask_expert.aspx
http://www.freereportsforhomebuyers.com/eight_questions.aspx
http://www.7secretstobuyhome.com/seven_questions.aspx