Foreclosure Home is it worth to buy?

Question

How many % does Foreclosure Home save over non foreclosure home? Is it worth the save? Do i need to put more money down in foreclosure, do i need real estate agent?

Answer 1

buying a home in foreclosure is not much different a process than buying a home thats listed for sale. you dont need an agent if you're able to deal with the seller directly. you make an offer and if they accept you execute your contract for the purchase and sale. you just have to examine the price you pay against the price you would have paid if you were to have purchased similar on a for sale listed property.

anyways, if your financing the purchase, your lender is going to be involved.

nows a good time to be looking at properties, with declining markets and desperate sellers, you can get some good concessions, seller paid closing costs etc. rates are good hovering right around 6% right now, so nows a good time to get the most house for your money.

btw... analysts predict the peak of the current foreclosure crisis will wont be reached until summer of 2008...

Answer 2

Every foreclosed home's sales price is a case-by-case depending upon who is selling. If it's the mortgage company and their inventory is not yet in overload, many of them list very close to fair market value. If it's still with the owner as say a preforeclosure or short sale, you've got a very motivated seller and possibly a good buy if the preforeclosure has enough equity to allow attractive negotiations. A short sale is when the mortgage company allows the house to sell for less than what is owed. Short sales are a great win-win because they can be a good buy for the purchaser while saving the owner from destroying their credit.

Soliciting the aid of a real estate agent for comparable sales in your area will determine what is and is not a good buy. What the public finds online for comparables is often sketchy and not necessarily within appraiser guidelines. You need the expertise of an experienced real estate agent for your area to give a true account on recent solds.

Financing on a foreclosure is common. Even some auctions will allow it. You just need to be fully approved and show proof of your approval and that you can close quickly if you get the winning bid. A certain amount of cash will be expected at the auction from the winning bid to prove earnest intent to purchase.

One last word of caution: The spread between sales price and fair market value often determines if you've got a "good deal" or not. Think about it. If the previous owner could not afford to make their mortgage payments, then clearly they didn't have the money to maintain the house either. A good inspection of the house prior to the bidding or offer along with comparables in hand should guide you in what to offer. Don't get caught up in the word "foreclosure" automatically thinking you've got a good deal because it may not be, worse, it could be a money pit.

Be careful. Arm yourself with a team of licensed professionals: inspector, Realtor and loan officer if financing. Keep your emotions out of it and make sure the end result is in line with the main objective you had going in. Best of luck!

Answer 3

Purchasing a foreclosure does not necessarily translate to ANY percentage of price purchase under market value. Each property is unique in that regard. Some properties sell for considerably less than the going rate, while others sell close to or at current market value. You should engage a real estate agent, since the lenders generally list their foreclosures for sale with agencies, and the lender pays the real estate brokerage fees.

Buying a foreclosure is not all that different from buying otherwise, with the exception that you are buying 'as is'. The lenders, with rare exception, make no repairs to these foreclosed properties. You will be allowed to have an inspection done on the property, so that you will know what defects, if any, exist in the property.

Answer 4

Sometimes an agent can be help full in buying a foreclosure. Your state has laws that protects new home buyers. Some laws include full disclosure, meaning the homeowner must disclose any material defect that could affect the value of the home. Because the home is in foreclosure you have to wonder why the current owners do not want to make the payments. Maybe there is something wrong with the home that they are not telling you, if so you have full recourse under state law. This is where a an agent can be helpfull. But whever ou do use a title agent to make sure the property is propertly transfered to your name and that you have title insurance to protect you against any other liens that may be encumbering the property. The homeowner may not have told you there is a 10,000 tax lien against the home. So by using a title agent you will know exactly what is owed on the foreclosure you are trying to buy. And by using a home inspector they can inform you to what is wrong with the home so that when you purchase the home not only do you know exactly what owed, buy you will know how much it will cost you to bring the home up to living condtions. Hope this helps,

Answer 5

Foreclosure home is sold on the bank price. It means that whatever is left on the mortgage is usually be the selling price +/- 3 to 5 %. It is not very profitable because most of the foreclosures you have to do some work. I think you should get a Real Estate agent because he/she can pull the $/sqft and can help you with the paper work as well it will give you an wdge over negotiating the best price for that home. If you have a good score and down payment you can buy homes that you don't need any work and can cah on your investment in about 5 years in most area.

Answer 6

Foreclosures are not recommended for first time homebuyers. They are often in awful shape, due to the previous owner's neglect, due to sitting uninhabited for some time, and sometimes due to squatters damaging the house. This $16,000 house may need $100,000 or more to be livable. At the very least, you need to see the house and get it inspected by a home inspector of your choosing before you decide to buy it. I think what you should do instead of going for this is talking to a real estate agent about your budget, and see what is possible in your area. It's very possible that houses you think are too expensive would be negotiable to a more reasonable price.

Answer 7

How much do you know about it? Is it priced close to market value? Try & locate prior owner as they usually can tell you all about the home, the lending institution that let them down, all kinds of helpful things.
My home was foreclosed 2 years ago. It eventually was bought by a "flipper" and a lot was done to make it more attractive. Still sits unsold.
There is limited market for homes now. I would be extremely hesitant to buy as homes are declining in value, and I don't see that changing in my lifetime.

Answer 8

In a foreclosure auction you need all cash. If the opening bid $170,000.00 You need all that in cash. You can go the banks regarding their R.E.O. department. Then the bank will be willing to sell it less and take a loss. This all you need is to qualify with them or someone else. I hope I answered your question.