What are your thoughts on buying a foreclosed home?
Is this a good, or bad, thing to do? How does it even work?
It’s no different than buying another home, save for that the owner (bank) is generally not interested in negotiating for repairs. If repairs are needed, you take that into account with your offer to purchase.
ALWAYS have an inspection of such properties and have such inspection denoted as a contingency to your offer to purchase. At least you will know the condition of the property, and can walk away if major problems turn up in the inspection.
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June 25th, 2010 at 1:34 pm
I am very interested in buying and researching foreclosed homes. There is a really good book you can read, "Buying and investing in foreclosure homes for idiots" It explains everything and any question you would have. Hope this helps.
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June 25th, 2010 at 1:59 pm
You are buying the house directly from the bank, who usually list the house w/ a local realtor.
Foreclosures can be in good shape or can be a real mess, just like non-foreclosure homes.
Look in a local small publication like a pennysaver- hopefully you’ll find a real bargain.
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June 25th, 2010 at 2:32 pm
It can make good sense but it is full of dangers for the poorly informed. First make sure their are no other liens on the house (buyer assumes those liens), make sure you know the condition of the house as in most states foreclosure sales are ‘as is’. There are other pitfalls. Get good advice from someone experienced in foreclosure sales or a real estate attorney before you go ahead.
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June 25th, 2010 at 2:59 pm
I have thought about buying a home that is forclosed, but the only wy I know of doing this is when the house goes up for auction. You have to find out when that is, go and place a bid, until the highest bidder wins. Another option would be to go to a bank directly and ask if they have any forclosures, find out how much is left on the mortgage and see if you can afford it per month. Banks do not want to keep the house, because they are losing money every month. But beware, some homes can be trashed, see if you can get a tour of the home before buyin it. Godd luck
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June 25th, 2010 at 3:19 pm
Now is certainly an excellent time to buy, MLS listings (home inventory) throughout the country are beginning to stabilize and even come down. Remember that higher-end real estate will always hold it’s value better than lower end real estate, but lower end real estate is easier to flip and will appreciate at a faster rate. Good luck!
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http://www.listingsupply.com
June 25th, 2010 at 3:41 pm
It’s no different than buying another home, save for that the owner (bank) is generally not interested in negotiating for repairs. If repairs are needed, you take that into account with your offer to purchase.
ALWAYS have an inspection of such properties and have such inspection denoted as a contingency to your offer to purchase. At least you will know the condition of the property, and can walk away if major problems turn up in the inspection.
References :