Maddy Brooks
Maddy Brooks
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4 years ago
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Would you recommend for or against buying a foreclosure property?

I've never bought a home before, but am starting to consider it more and more. I see some really great deals on foreclosure properties, but am hesitant to even look at them for some reason. Is it a rule of thumb not to buy a foreclosure, even if you will be saving a lot of money? I guess I don't even know how the process would work.

Thanks for any help you can give me!
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Emily Pena Howell
Emily Pena Howell
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3 years ago
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Bank owned properties are often GREAT DEALs. A good real estate agent who is willing to do the extra work (like me) can find out by research / quickly previewing for you, whether or not the house is in excellent / acceptable / fundable condition. One photo is a dead give-away...stay away. I get lots of information from listing agents and a I do a ton of previewing. My experience indicates that banks are willing to do much more work than they used to.

For example, one young couple client-friends just moved into a home that we made an offer on and the next time we went to see it, it was being totally painted, all the bathrooms redone (new fixtures, counters, floors, lighting...everything). The entire interior was getting painted and all new flooring was being put in. They were THRILLED because they thought they'd "live with" the green carpet until they could afford to change it down the home-ownership road.

And, we got 3.5% of the sales price from the seller toward my buyer's closing costs.

Don't be afraid to check into Bank-Owned homes, but STAY FAR, FAR AWAY FROM SHORT SALES.

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michael jefferson
michael jefferson
Browsing Housing
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4 years ago
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I've done several loans for foreclosed properties. there are some definite bargains out there, but many need work. Look into getting a rehab loan that is insured by FHA so you can hire a contractor to ''fix up'' the property before you move in. The costs of the repairs is added to the loan, it is NOT out of pocket expenses. typically, the value of the property increases substantially before you even move in. mpj731@yahoo.com mortgage professional

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Jamie K.
Jamie K.
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4 years ago
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Buying foreclosures can soudn like a really good deal, and often times they are.

Something that is important is that foreclosures is that they are offered "as is" which means that there is no guarantee that things are necessarily in selling condition. Also, often times you may not even be able to tour the inside of the property or do a full inspection before you commit to buying it.

Now, this is not always the case, but often times these homes are in not as good condition as homes that are for sale under normal conditions. These are people who have lost their homes because they are unable to make payments, which means that they probably were unable to repair or maintain other things in the house as well, while they were trying to make their mortgage payments.

Also, make sure that you do a title search to make sure that there aren't any liens on the property- which you will be responsible for paying off

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Ida Bear
Ida Bear
Real Estate Professional
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2 years ago
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Foreclosures and Short Sales are a part of our market and may be for some time to come. If you work with an agent that has great experience in both and your have a GREAT home inspector you really have a good team and a means to address this type of sale. Personally I want my buyers to consider all homes that meet their needs and wants. Many banks are realizing that they have to be competitive and I am finding more and more bank owned homes in very good condition. *HUD homes have even gone through a thorough inspection and HUD discloses their findings. You can search right on the HUD homestore website for available listings in your area. Key to a successful transaction is to have a great team working for you

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Katrina Hamilton
Katrina Hamilton
Real Estate Professional
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4 years ago
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Hi Maddy,

I list and sell bank owned properties in San Diego, California and highly recommend researching your options in a bank owned. Depending on your price range - you can actually find a great deal. Here's one for example, bank owned with only 1 previous owner, recently built, new development 3bed/2.5bath/2 car garage/single family - details can be viewed here http://www.postlets.com/res/4029665

to search all of San Diego County foreclosures visit www.foreclosures4sale.listingbook.com

Hope the information is helpful!

Sincerely,
Katrina Hamilton
Direct: 858-405-4407
www.downtownREOs.com

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Greg S
Greg S
Real Estate Professional
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3 years ago
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I'd like to open this thread up again as recent discussions of robo signers and foreclosure mills has lead to the question "does the servicer or lender actually have the right to foreclose and sell the house?".

What this may lead to in the future is the Title to the foreclosed property being questioned. Thus if you buy a foreclosed house now, and Title is incorrect, would you be asked to move out in the future?

Once the mountain of foreclosures has subsided lawyers will be looking for their next income stream and this may be their next target.

Make sure Title work to your house is valid, that Title Insurance is correctly issued and that the Title company has adequate insurance. Perhaps somebody in the Title Company world may care to add to this.

Greg S

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Eva Albuja
Eva Albuja
Real Estate Professional
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3 years ago
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Maddy, how did you decided on or against buying a foreclosure? Eva

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Culver City Realtor
Culver City Realtor
Real Estate Professional
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4 years ago
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Not necessarily, but you do have to be aware that often a foreclosure will not be in the best of condition. If you can tackle repairs, and the unknown, you can get a great deal on a foreclosure property.

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David Bethel
David Bethel
Rental Housing Professional
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1 year ago
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Hello Maddy,

In my opinion, it s better to take an estate agent s advice, whether to buy a foreclosure property or not. You can conduct a search online to find a trustworthy agent anywhere in the world. They will give you detailed information on new developments, offers and latest market strategies and rules.

Buying a foreclosure is definitely a bit of a grind so with just a few clicks of the mouse, home buyers can search through hundreds of online listings and sort through dozens of photographs and aerial shots of a foreclosure home. There are many good firms where you probably get a pretty good idea of the type of property you want.

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