Forclosed Home Listings

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newb

newb

phresh
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Hey everybody. Well, Ill be a daddy in January, so Im lookin to move my girlfriend and myself into a new place before then. I got a number for one of those forclosed home listings that say you can move in for little to nothing down and keep monthly payments lower than renting an appartment. I called em and they said they have something like 300,000 listings in my state, so I figured my chances of finding a place are pretty high. Before I get all tied up with a bunch of BS thatll screw me over, I was wondering if anyone has any experience with purchasing from one of these listings, or a forclosure agency, or anything along those lines. If you have any advice or warnings about buying a house this way, please let me know. Thanks in advance for any info.
 
talk to a mortgage company first.. if you've never purchased a home, there is most likely a first time buyer program for you.. from there i'd search your local MLS.. i'm sure over half the homes listed are foreclosures
 
foreclosures can be and most likely will be a nightmare.

any liens (water, sewer, city taxes, etc) will be owed by YOU in the amount THEY defaulted.

Then, you make an offer to the bank-- not the seller. They generally don't budge, even after you've done an inspection on the place and found X things wrong.

The best thing you can do is to get the BEST realtor in town who knows foreclosures and can get you the info you need on all this stuff.
No, not the one with the mercedes... the one with the working vehicle. that's the person you want on your side.
 
you also found one without any liens on it... the only thing they defaulted on was the mortgage.

another thing i forgot to mention is that you can't finance/mortgage liens. they need to paid cash at closing
 
+1 one on the nightmare.

I tried to buy one just outside of Buffalo a number of years back. Any problems that went wrong with "I" had to take care of.

There is no seller to upkeep the home. Any problems that the mortgage company find wrong, YOU must fix before they will approve the mortgage.

It ended up not going through because of a mold problem. The city required an mold inspection on all houses and they found mold, that could have been dangerous. The house had been vacant for at least a year.

In my opionion: The realitor, mortgage consultant and attorney must be a team. If you can find a set that knows each other and have a good reputation you will be golden. It will save yourself time and ALOT of headache.

Either way, good luck!
 
Hey, thanks a lot for the info everyone. Considering all things said, I think Ill be better off to just find a cheap appartment or duplex for now. My time is kinda limited, and my money is definately limited for now. Maybe in the future I could consider one of these houses tho. Thanks again for the info, but if anyone else has anything they want to chip in please do so.
 
get a nice condo/duplex/triplex that you can ;own; with association fee. i'ts better than renting by far.

mortgage interest write off on taxes FTW.
 
Well, some condos just got put in near my parents house (were Im living now), but they're starting in the 180's. Thats deffinitly out of my range for a lil while lol. Other than that theres no units for sale. Ill just hafta keep my eyes open for a while.
 
Plus the foreclosures probably dont have any pipes or wiring in them. Scrap prices of copper FTMFW
 
Main issue with things like foreclosures is it might knock you out of a lot of financing options.
If you're a first time buyer you'll get the best rates buying a house that can pass inspection, chances are if the houses doesn't pass, you'll need to put down a pretty large sum on money.
 
contact your local tax office. I know that my county does "free and clear auctions" once a year. the listings come out about 6 to 8 weeks ahead of the auctions you can use that time to research the property and secure a loan, but you have to have cash in hand the day of the auction. The house next door to me was sold like that ~24k and about 10k in damages and is easily worth 80-110k once the work is done.
 
I know here in the Detroit area, there are so many foreclosed homes-we lead the nation- that the banks don't even want them any more. If you can get in contact with the right realtor, they will do short sales on them, literally for 30, 40, 50 cents on the dollar, just to get rid of them, they don't care because they write off the balance as a loss. One other thing to consider is that most lending institutions won't finance less than 50 grand on a mortgage, it's just not profitable enough, so in order to take advantage of some of the steals out there, you have to have cash in hand. There are thousands of these homes here.
 
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