Buy Foreclosed Homes

If so, what is the usual timeline for such a transaction? Are people really paying outside vendors for the renovations? I know this is dependent on the property itself but is it really that good of a business idea to do such things?

I am in the CA market and there isn’t much flipping going on here. The 90 hold on selling has put a damper on that. Most are being bought and held.

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I know it doesn’t work for short sales but is it different with foreclosures?

Foreclosures take so long for a couple of reasons. The main one is that banks are slow to begin with, and getting them to do all of the paperwork and approve the sale is a long process. The prices people are offering as less than what is owed on the houses and officers must approve each sale. They have so many foreclosures in their portfolios right now, and getting the officers to approve every sale is time consuming. They are just swamped. Foreclosures being filed, court cases and auctions, realtors asking to show them, people asking to buy them – they just have so many more of these than they had in the past that most banks can’t keep up.

Paying in cash will shorten the process a little, since they don’t have to pass mortgage approval papers back and forth, but it’s still a long process.

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I’m planning to buy an investment property pretty soon and I want to know what the best course of action is in order to achive such a goal. Any good Ideas?

A foreclosure occurs when a buyer defaults on his or her loan payments, often as a result of bankruptcy or other hard times. As the real estate market has heated up, so has the market for Web sites and other clearinghouses offering to help people find quality foreclosed properties. But beware of the hype; foreclosures are out there, but to get the pick of the litter, you need to build relationships first. Another myth about foreclosures is that they are offered at 40, 50 or 60 percent below market rates. This is simply not true. Lenders–who own and oversee the sale of the property–know that foreclosed properties are a hot commodity on the real estate market and will not sell them for less than they are worth. In reality, 5 percent to 10 percent below market price is the norm. One piece of good news, however: foreclosures can be found in all types of neighborhoods. When times get tough, foreclosures happen everywhere. You may be surprised at the number of foreclosed homes found in affluent neighborhoods. Buying a Foreclosure There are three primary ways to buy a foreclosure property: • Attend a public or private foreclosure auction. You will usually get a chance to inspect the property first this way. • Buy a preforeclosure, which allows limited review time and requires a buyer to take on the mortgage and any other outstanding debts on the property. • Buy a real-estate-owned (REO) property that the bank has purchased at auction. Research First, Then Build Your Contacts As discussed in previous chapters, it is important to invest in your own neighborhood. That is why it is best to learn how the foreclosure process works among lenders in your neighborhood. Lenders have different methods by which they pursue foreclosures, but when the decision is made, they will file a notice of default (also called a lis pendens) with the clerk of the appropriate local court that handles foreclosure issues. This document is a public record available for anyone to see, and it gives notice to the borrower that there is a claim on the property. Your local newspaper may publish new filings.

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I don’t have much money but I live in Southeast Michigan where the market on homes is good for buyers and there are a lot of foreclosures. So how do I do it?

You should go online to a few banks and find out what their REO’s are. These are properties that have already been thru the foreclosure process and the bank now owns them. I would not go the short sale route because it can take months for the bank to approve the offer. I am in the process of buying a reo that belongs to countrywide. We got a great deal just remember not to low ball when making an offer because they may not even counter you back.
Goodluck.
For countrywide reo listings just go to their website under buying and on the left will be the link for reo’s.

I keep getting the run around with everything .. I just need to know the basics and who I should contact about getting information on a specific property
I have the property already picked out , I saw it on the internet for $13,000 its 1.5 acres and it has a 3 bedroom 2 bath house on the property that is in need of work , but my husband and I drove over there to see it and the "owner" was there , he told me that he was trying to sell it for $69,000.. I told him that it was listed on the internet for $13,000 and he said that I saw the wrong information.. so I decided to look the property up online again and it said that now they only want $12,000 for it and that its bank owned… so I looked up the "owner" and it says that he has a mortage on it but that its deliquent or whatever.it does list the company that he has it through but they wouldnt release any information to me. I think that he may be getting forclosed on and he is tring to sell it before the bank can and make a profit.. I am looking for my mother who lost her house in south florida during the last hurricane, she only got a little money from her insurance company …
I just dont want her to get screwed by this guy .. how can i get the mortgage company to tell me how to purchase the property… its an amazing deal and I dont want my mom to pass it up ($12,000) but she is afraid that if we go through the guy that he will maybe take her money and run ..what should I do ??

Call any local mortgage lender. They should be able to help you locate the person to contact.

Can I just show up to an auction? Do I have to pay in cash? How does it work?? 10 pts for best answer!! Thanks!

Each county has it’s own rules. In mine you show up at the courthouse & have to have a certified check for the minimum bid amount on the home. You have to show the check and be verified before they allow you in as a bidder.
To buy a foreclosure you need serious knowledge, this is not a first time buyer thing to do on their own. Get a very knowledgeable real estate attorney.
If for example this most awesome home is being foreclosed on for the favor of the 2nd mortgage only; that does not discharge the first mortgage. You may end up obligating yourself to more than you realize.
In most cases people are walking away from the homes because the debts far exceed the market value of the home. If they could have sold they would have. You are typically seriously upside down if you walk away from a house.

You would be much better off to buy a post foreclosure bank owned property. Much less complicated.

I been thinking alot lately about buying a foreclosed home but my credit is not the best…Are there any loans out there for people like me..and what are the exact steps I should take to rebuild my credit besides paying off the 3 things I owe?

credit-report-score.10001mb.com – try this service to boost you credit score before getting loan. After credit repair you can get the loan with minimal interest rate.

The prices are real cheap and it seems to good to be true.

If you are planning on flipping and selling the property for a profit there is one other thing you want to do aside from a home inspection. You want to look up in public record for homes in the area that are also foreclosed properties. If there aren’t many or if the values of the foreclosed properties are not comparable to what you are trying to sell the home for, come time to sell the property you may have a hard time. Most lenders for your perspective buyers won’t lend money if there aren’t comparable homes in the area that are also foreclosures. Just be careful because it might force you to keep your hands on the property longer than you’d like….again, this is only if you are trying to flip and sell the house for a profit.

North Georgia area/ We have not seen any rodents or holes only dropings. EWW…help

Well here in australia its 100 dollars call out fee, and the rest depends on how big the job is.. Usually around 500 dollars all up to spray.

Why dont you just set traps your self??

Wouldn’t it be cheaper for a potential investor or new home buyer?

I’ve been browsing a lot of the homes – online in california.

A number of the homes that have been foreclosed on and available on the market seem like great deals. Because the bank only wants what is left on the mortgage to be clean with the home.

The one problem I see with the homes being offered, is the extensive renovations the former resident did with these homes. It seems that someone had a lot of time on their hands and a lot of bad taste. On the outside the houses seem to show promise. But what they did to the house interiors & surrounding property up-grades, were just ugly if at all extraneous wastes of money and materials.
These weren’t up-grades, just liabilities. These degrade the property further than improve it.

I’d rather bulldoze an ugly house & re-build from scratch than get someone else’s ugly house.

We have a buttload of foreclosed houses here in Las Vegas also but most just stand there empty. Pretty soon graffiti on them and holes knocked in the stucco. Home values dropping like a lead balloon. Very sad situation. However, I have to say my daughter and her husband bought a foreclosed house a few months ago. When new this house must have been at least $600,000. Now a couple of years later after the foreclosure it sold for $300,000. I guess it was a 1/2 price sale. It’s an awesome house with slate flooring, 4 bd/4ba, loft, 3 car garage, 3800 sq ft and on a big lot in a cul de sac. Hurray for them!