General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsHas anyone ever bought a home that was foreclosed?
Good/bad experience? Any surprises?
Thanks for any thoughts/insights.
Hassin Bin Sober
(26,272 posts)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)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)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)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)It was after the housing market crashed. I think the prior owner just walked away
Get your inspection.
Dot L
(5 posts)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.