How do you find them, how do you buy one and what do some of the terms mean? I was browsing around on yahoo realestate and noticed homes for sale with a loan balance of as low as $2k dollars. Does this mean all you have to pay is the remaining balance of $2000. I m confused please help.
I am also looking for sites that have free listings of foreclosures in cypress and buena park, california. Thank you for your help. :)
2007-12-27 03:55:00 · 4 answers · asked by admcalvin 2 in Business & Finance ➔ Renting & Real Estate
I am not sure what you are looking at. Foreclosures do not sell for 2k, they sell pretty close to the market rate. They are driving the market rate down, but they are still in it.
The foreclosers are in the MLS, listed as REO. Have your agent print you up a list.
2007-12-27 04:12:03 · answer #1 · answered by Landlord 7 · 2⤊ 0⤋
Do a search here in YA, you will find tons of info on foreclosures.
No, you don't pay the remaining balance, the property will either be listed with a Realtor for sale or be auctioned off. Many novices believe that lenders sell their REO properties for a small fraction of fair market value to "clear the inventory" and that just isn't true. Lenders are in a position to obtain their price if the house is in fair to good condition. Houses you may see for bargain prices are either a teaser to get you to sign up for a service or are not something you would want to purchase.
Remember, there are experienced investors out there looking for bargains and if a house was a good deal at $2,000 - it would have been gone a long time ago.
2007-12-27 04:33:46 · answer #2 · answered by godged 7 · 0⤊ 0⤋
The city's Tax Assessment Office or Recorder of Deeds is a good place to start looking for foreclosure listings. How they work (in general) is the bank that holds the loan offers the home up for auction with the starting bid being the loan balance. You bid against other interested parties and the highest bidder wins. So it is very rare to see properties actually go for $2000. Read the auction listings very carefully before you bid; some require that you pay other debts like tax leins, water bills, etc on the property. In general, it's not that easy to get a really good deal on a foreclosure property because the banks will sell to third parties like real estate liquidators before they put the homes up for auction, and foreclosure properties often have lots of other fees and debts associated with them.
2007-12-27 04:15:10 · answer #3 · answered by dcgirl 7 · 1⤊ 0⤋
You won't be buying any of these properties for $2,000 or anywhere near that figure. What you are seeing isn't the remaining loan BALANCE. It's the amount that the owner is in arrears or deficiency.
Contrary to what the assorted infomercials advertise, these properties are sold somewhere near market value, although there are bargains to be had. However, the bargains are not THAT good.
2007-12-27 04:40:42 · answer #4 · answered by acermill 7 · 0⤊ 0⤋