Is it a good option to buy a foreclosure home?
Mar 30, 2009 in
Financial and Loan Tips
alessa
My questions are several. Can I go to my bank and ask for a foreclosure loan? And also what type of other misellanous charges come with buying a foreclosure home?
My questions are several. Can I go to my bank and ask for a foreclosure loan? And also what type of other misellanous charges come with buying a foreclosure home?
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3 comments
SuperCactus on March 31, 2009 at 12:11 pm
There are three buying opportunities with foreclosures. The period from the time the notice of default is entered and published. The foreclosure auction. Thirdly… if the home does not sell at the auction it becomes bank property.
1. You may be able to buy with little or nothing down if you buy subject to the existing financing. That means you don’t have to get a new loan.
2. At the foreclosure auction you have to exhibit that you have the cash and can buy on the spot… or within a day or two. No time to get a loan.
3. Buy directly from the bank. Sometimes they will even provide the financing… but usually you have to get that on your own just like any other mortgage loan.
Lil Bro on April 1, 2009 at 1:55 pm
Not all foreclosure sales are worth the paper they’re written on. As the saying goes, there are three prime factors in determining value: Location, location, location. Some houses are trashed, so abandoned and some have such a large tax lien on them you’ll go bust. Whenever possible, go to the local assessor’s office and look up the property. Also, go to Google Maps or Yahoo Maps and try to look at the property in satellite view. Try to visit the property before the sale. Some agents allow preinspection, some don’t. Good luck, and good hunting.
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H mom of 3 on April 4, 2009 at 8:57 am
I would agree with Super Cactus’ answer but know that most foreclosures are left trashed and are more than likely require a bit of fixing up. Especially if the owner left angry, before they left they could have gone through and smashed the tile bathroom, they could have painted the walls blood red, or even worse black when they realized they were losing the house, they may have caused some structural damage to the home like pipes bursting due to cold weather, or something like that. So if you are going to buy a foreclosed home, make sure that you have the extra money just in case you need to gut the place and remodel. Also remember because the bank owns the home they are not required to fix any of these problems before they sell it to you, you are buying the home in as is condition and you must be prepared for what may have happened to the house. Good luck and have fun