Anyone buy a foreclosure?

[MistyMountain]

We just sold our condo. We thought we would move out of state but dh just got another job in state. There are not a lot of houses in our price range and they go really fast and would be stretching our budget. There are a lot of foreclosures but I can't really see the details or pictures. I was thinking of maybe getting a foreclosure that isn't totally trashed and unlivable but maybe needs some work on updating things like carpet and paint etc. We would look at places then have someone we know look at us with us if we really like a place. Is this feasible. Can you find decent foreclosures? Dh has really good credit.

[MindyD]

Our house was a foreclosure and was actually owned by the bank. By the time we saw it, they'd painted everything and put in new carpet throughout the entire house. From what the agent told us, the previous owners trashed it before leaving, but we didn't see any of it. It looked like a beautiful house to us, and we got a great deal on. The only drawback is that a bank doesn't negotiate, but we got such a good deal, and they did pay closing so we were happy with our experience. We'll probably look at foreclosures for our next house too when we're ready to buy again.

[Lucy the Valiant]

We got an EXCELLENT deal on our foreclosure! We did have to work through some "creative" weeks (switching oil tanks - a few days of no hot water, etc. - had to put a floor in the living room, stuff like that), but we did move in right at closing and have been working little by little ever since.

 

It was an IDEAL move for our family. (I realize it's not for everyone.)

[elegantlion]

Our home was a foreclosure, but it was a fixer-upper, which is what we wanted. You can find decent foreclosures, but many times they are bank owned. What we found is that banks were unwilling to negotiate and homes were being sold as-is, meaning no repairs would be done.

 

We also saw many home sit on the market because they were overpriced even as a foreclosure. We live in a low cost of living area and the banks were out of state and, imo, didn't understand the local markets and were unwilling to budge on price (according to our agent). We bought our house nearly 18 months ago. There are still some foreclosures for sale in our small city that were for sale when we looked.

[Mama Geek]

You can find nice foreclosures, some that need some work and some that are just trashed. We bought ours and it needed some work. It looked really bad, but we made a list of all that needed done and then what we wanted done. We worked that into our budget. The big things were, appliances flooring, paint, light fixtures, it needed a pool pump and the pool needed drained, cleaned and refilled. The screen room needed rescreened. We have done lots of other stuff that were things we wanted to do, but those were the have to things and now the house is a really nice place to live.

 

ETA: Before we bought this one we had made an offer on a foreclosure that didn't need anything. Someone bid higher than we did and the bank took their offer. I am happier with the house we ended up buying.

[MamaCoop04]

What's the best way to find foreclosures? You google it and you get hit with "pay first, then we'll show you the deals" type of websites.

[beaners]

What's the best way to find foreclosures? You google it and you get hit with "pay first, then we'll show you the deals" type of websites.

 

Homepath.com is what we have used. You can get a feel for what houses need a lot of work if they only offer Homepath Renovation mortgages instead of regular Homepath mortgages. Hudhomestore.com has HUD properties also, and they include a detailed summary of what repairs are necessary according to their inspection.

 

One thing to take into consideration when buying a foreclosure is your financing. If you are going through FHA, they will only insure houses that have flooring, finished walls, working plumbing and electric, etc. You can also get a 203K mortgage through them to cover repairs, but there are limits on how much you can spend for that.

 

We looked at a ton of foreclosures and HUD listings before we offered on the house we are in the process of buying, but in the area we were looking the market was moving way too fast for us. We were doing everything from out of state at that point, and by the time we could get someone to return our calls the houses had already been bid on.

[bettyandbob]

Not all foreclosures are trashed. A close friend of mine lost her home to foreclosure last year. It was well maintained. Her husband totally mismanaged the family finances while my friend worked full time at one job and nights and weekends at another. The mortgage was within what they could afford on one income, but he mismanaged both her incomes and his and didn't pay the mortgage for a few years or taxes or other bills. My friend has now had a lesson in why she should know the family finances, but I think she still isn't that involved. :confused:

 

Who know where the money went, but the house looked great.

 

I don't know if you can look at the foreclures, but I would try to do that. At least look at the outside. If you are buying at auction, you may not be able to see the inside. The person who bought my friend's house bought at auction and he was really surprised how great the house was when he saw it before they moved out. I think that's why he was so flexible about them getting out.

[runmiarun]

We looked at several foreclosures through Homepath.com. One thing I noticed was that if a house had more than 4 pictures listed, it was in better move-in condition, usually (take that with a grain of salt, there will be exceptions). Find a good realtor, don't be afraid to ask them questions about their experience with Homepath properties. Some realtors have more experience with those than others and can help you through the process. Also, you'll have to be pre-approved when you put an offer in and have to sign a primary residence/owner-occupant form. There are some really nice foreclosures that were well-maintained but the owners just ran out of money. One more tip-with Homepath, you can sign up for daily/weekly emails on new properties. You can do the "First Look" program, which gives owner-occupants the first looks before investors.

 

We've had several friends get into Homepath properties with minimal work. Best of luck to you!

[happypamama]

Our first house was a foreclosure; we happened to find it when we were looking for a rental and not finding anything. We happened to see an ad in a real estate magazine for that house, and it was in a good price range. It was 2/3 of the price of identical houses in the neighborhood, and we would not have been able to afford it at full price. It needed a lot of cosmetic work, but since my husband is a professional carpenter and did most of it himself, it was totally worth it.

 

I would say to get a really thorough inspection done if you buy a foreclosure, and be prepared to do heavy repairs. But it can be a really good deal.

[Dawn in Ohio]

We bought a foreclosure that was owned by the bank (called an REO). So it was just like buying any other real estate listed in the MLS. I would recommend working with a realtor and forget about all the online places that want to charge to give you listing info. A realtor will know which homes are foreclosures.

 

Our house needed half of the kitchen cabinets replaced. It cost us about 3,000. It also needed all appliances. In other respects it was in great condition, just a little dirty. We were able to get a larger house at a reasonable price. I wouldn't hesitate to consider a foreclosure in the future.

 

From what I understand, banks don't often accept low-ball offers. I would plan to offer close to list price. Sometimes they do start out listing them too high. But then they keep dropping the price by increments until they reach a price where it sells.