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Has anyone ever bought a home that was foreclosed? (Original Post) babylonsister Jan 2015 OP
I haven't. I have some friends who have. Hassin Bin Sober Jan 2015 #1
Me and my ex bought one in 1994 in babylonsister Jan 2015 #2
Most states have statutes and laws that give ..... Arwinnick Jan 2015 #3
Make certain your title policy comes from a substantial, Ilsa Jan 2015 #4
i did. no difference than buying from a person. bought from bank Liberal_in_LA Jan 2015 #5
Yes! in Southern California Dot L Jan 2015 #6
Do you mean before or after I bought it? jberryhill Jan 2015 #7

Hassin Bin Sober

(26,272 posts)
1. I haven't. I have some friends who have.
Thu Jan 29, 2015, 11:42 PM
Jan 2015

In fact, I'm waiting for a client to close to start work on a new kitchen and bath. It was supposed to close two weeks ago but Fannie has to settle a judgment the homeowner's association got entered while the condo sale was under contract.

A couple years ago, I would have said be prepared for headaches negotiating and settling the deal. I think the lenders have got in to the swing of things and set procedures in place to move the properties. So it shouldn't be much different than a normal deal.

If I was looking today I would definitely look for a foreclosure. I would look for one that was ugly and smelled like cat piss (only half joking). But I can do upgrades. And I'm crazy.

My clients are getting a really sweet deal. It's $60k under a recent sale of the same floor plan. And $160k less than a pre crash price.

babylonsister

(170,962 posts)
2. Me and my ex bought one in 1994 in
Fri Jan 30, 2015, 12:03 AM
Jan 2015

Houston. Great house, many upgrades, he lives there with his next wife. I miss the stuff I picked out, but am so glad she's loving them.

Arwinnick

(39 posts)
3. Most states have statutes and laws that give .....
Fri Jan 30, 2015, 12:03 AM
Jan 2015

foreclosee's a year to reclaim old home.They must repay the mortgage payments(including relisting fees) and reimbersing the new owners of all expense's.Investors who buy foreclosed property's tend to make expensive upgrades to deter any such actions by the old owners.Every state has different forclosure laws.My ex bought one,got a good deal.My girlfriends daughter bought one real cheap and gutted it.The rebuild cost 3 times what she paid for the place.but the value went up greatly.Hope that helps.

Ilsa

(61,675 posts)
4. Make certain your title policy comes from a substantial,
Fri Jan 30, 2015, 12:09 AM
Jan 2015

Successful title policy company vs some smaller operation that might close in a few years in case you need to defend your title because the bank didn't foreclose properly.

This was the advice I heard from a lawyer on Thom Hartmann, I think.

 

Liberal_in_LA

(44,397 posts)
5. i did. no difference than buying from a person. bought from bank
Fri Jan 30, 2015, 12:43 AM
Jan 2015

It was after the housing market crashed. I think the prior owner just walked away


Get your inspection.

 

Dot L

(5 posts)
6. Yes! in Southern California
Fri Jan 30, 2015, 12:50 AM
Jan 2015

During the melt-down of 2008, that was all you could buy! The banks weren't willing to work with buyers, so we had bids on at least 5 homes. We had homes auctioned or sold for a lot less than our offers. Our realtor even stopped one auction by telling the judge he had a buyer. Bank demanded more money, we agreed & they ended up auctioning it off for a lot less money anyway.

We ended up paying the seller's $1500 HOA fees so it wouldn't fall out of escrow, so don't believe the escrow company. It took 11 months to finally get a home, even though we had 2/3 down & a pre-approval loan. This home was vacant for over a year so there was a lot of plumbing problems inside and out. This could have been due to the builders of our development, since they had been sued prior to moving in (didn't know this). Be sure to have your home inspected by a reputable home inspector & possibly a plumber after the bank accepts your offer. One home had a shower that flooded the downstairs & we wouldn't have known if we hadn't had it inspected. It was worth the money to know that home had mold, the air fresheners should have been a clue. We think the only way we were able to buy this home was because we knew the selling realtor.

You might want to check-out www.realquest.com, it was helpful in following the progress of the homes we bid on, plus it gives you the current value. Of course now we are addicted to real estate porn. Good Luck!

P.S. 2-3 months after we moved in the bank tried to auction our home off.

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