How does buying a house in foreclosure work?
Dec 16, 2009 in
Financial and Loan Tips
SABADO GIGANTE
I was on yahoo real estate recently, and I clicked on foreclosure and I arranged the prices of the homes from the cheapest to the most expensive. I found some homes in my area with a price of about three thousand. Now is that a buy in price to take over the mortgage or what? How does that whole thing work? What are the dangers?
I was on yahoo real estate recently, and I clicked on foreclosure and I arranged the prices of the homes from the cheapest to the most expensive. I found some homes in my area with a price of about three thousand. Now is that a buy in price to take over the mortgage or what? How does that whole thing work? What are the dangers?
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3 comments
barbowork on December 17, 2009 at 2:32 pm
Most bank mortgages are not assumable. What you are seeing could be the asking price for the property. It could include the outstanding mortgage balance plus attorney’s fees. You need to check with a local realtor and see if this is a reasonable price. You can also look at property tax records for values. Tax values are often low so be sure to take that into consideration. If you are not a contractor, you might want to have a home inspection performed before you make any offer. You never know what is hiding in the walls (poor electrical) or in the roof (leaks) or basement. A home inspection isn’t cheap but it will point out all the areas of concern with a home. It could save you a lot in the long run. The danger is buying a home that looks good but costs you a fortune in repair work after the fact.
kurtis p on December 18, 2009 at 5:23 pm
Yeah its basically a tax lien that you are paying off that the previous owner could not pay…its different dangers that come with different property’s….just get a inspection if you get a foreclosed home…
butterfly234 on December 19, 2009 at 11:47 am
good luck