is it a good idea to buy a foreclosure home, In Southern California?
May 31, 2009 in
Financial and Loan Tips
epicwolf
First of all, is it a good idea to buy foreclosure homes. And secondly, is it a good idea to buy a foreclosure homes in southern california? I know the house in So cal are off the chains expansive but foreclosure pricing is good but i heard it’s a bad idea to to buy a foreclosure homes.
First of all, is it a good idea to buy foreclosure homes. And secondly, is it a good idea to buy a foreclosure homes in southern california? I know the house in So cal are off the chains expansive but foreclosure pricing is good but i heard it’s a bad idea to to buy a foreclosure homes.
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2 comments
Ron B on June 1, 2009 at 10:14 pm
When people hear forclosure, they think it means that the price is going to be way below normal. This is not usually the case.It only works when you get to the seller before they forclose, and they have equity to give up to you. It’s pretty much useless after the forclosure.
The bank that forclosed on the home will always try to recoup what they lost on the sale. Since most forclosures are done in the first years of ownership, there is little equity to be gained. If the housing market is good, banks will price the forclosure at market price and make money. If the market is going down, they will price just below market, but not by much.
Real estate auctions are a good second choice, but you have to have a lot of cash to get going. You can contact me if you have anymore questions about Southern California
Skip on June 4, 2009 at 11:18 am
It is always a good idea to purchase a property below market value in any part of the United States not only in Southern California.
Now that being said it further is only a good idea if you know what you are looking for and how to go about buying a pre-foreclosure. If you do not have the knowledge or a mentor to purchase pre-foreclosures then it is always a bad idea, because things will become complicated, you and the seller will become angry at each other and the transaction probably not go as you planned.
In Southern California pre-foreclosures are the same as any other, except the amount of money required to cure the foreclosure or aquire the foreclosure for your own use will cost you a bit more, where in other places you are speaking of anywhere from a few thousand dollars and in Califronia you are speaking of several thousand dollars.
You may purchase foreclosures in any housing conditon up or down, you just have to know your craft and know when and what and what to buy as well as holding time to be good at this or any other field you want to be successful in.
Buying foreclosures is like the stock market those that know what they are doing survive and those that don’t well they are now working at wal-mart or are real estate agents complaining about how bad the market is.
I suggest that if you want purchase pre-foreclosure then go to a book store and purchase a few books on foreclosures, buying and flipping or just plain distressed properties. These books will give you the knowledge that you will need to be successful in this business. You might find a few of them at your local library.
I hope this has been of some use to you, good luck.
“FIGHT ON”