Foreclosures pricing?

Question

If I look at foreclosures on the yahoo website home listings and I find one for say $1,400. Is that what it actually costs? Or is it what is owed at signing and its really going to be way more expensive. I am not sure how foreclosures work, nobody has ever really explained it to me. All I know is that the properties are where banks have repossed them. Please help me out. Thankyou

Answer 1

You need to know what the fair market value of the property is.

I recommend that you hire a real estate appraiser who is a Member of The Appraisal Institute.

Also, hire an attorney to include language in the contract that maikes the contract contingent on the appraised value as determined by your appraiser, not the lender's appraiser.

When the appraisal comes back below the price that you offered give the seller two choices:

1. reduce the contract price to the appraised value as determined ny the appraiser or

2. Agrre to cancel the contract and dirct the title company to return your deposit to you.

this is the only way that I have found to assure myself that I am paying no more than fair market value for a property.

Answer 2

You're not going to buy any house for $1,400. Yahoo and other sites list the amount of the current deficiency on these properties. The reality of purchasing one of them will put you much closer to actual market value of the property involved.

If the property has a fair market value of $100K, as an example, don't expect to get a purchase for less than about $80K. While there are bargains to be had in buying a foreclosure, they're nowhere near as low as you appear to think they are.

Don't waste your efforts and money on your own appraiser, as another poster suggests. Lenders could not care less what YOUR appraiser thinks. They are only interested in the amount of money they can extract from their foreclosed property. Do your own research with a qualified real estate agent, who will provide you examples of recent comparable sales, so that you have a good idea of what the property YOU are interested is worth.

Answer 3

foreclosures skill somebody did no longer pay for the abode. The monetary institution did no longer gets a commission for it. The Realtor has no interest interior the valuables. After the sale is done, the monetary institution will the two write off the version if a loss is incurred, or, greater probable, document healthful against the former proprietor for the version.

Answer 4

I found a VERY (V_E_R_Y) good article about HOW to buy a foreclosed property AND short sale videos here: http://all-foreclosure-listings.blogspot.com/2007/09/best-way-to-buy-foreclosure-home.html