HeartRN Posted July 22, 2005 Report Share Posted July 22, 2005 What are the + and - of buying a foreclosed home? I've been looking at the notices for homes around here lately, and most of them have a "balance owed" of about $10k less than assessed tax value. Is it a difficult process? I would be a first time buyer, so I've never been through the process (which I'm hoping to start doing in about six months). Link to comment Share on other sites More sharing options...
miracle Posted August 8, 2005 Report Share Posted August 8, 2005 Bump-a-roo! Link to comment Share on other sites More sharing options...
firstsource Posted August 9, 2005 Report Share Posted August 9, 2005 The plus you already know. Many times a better value than ones that are not.The only minus things to consider:You would REALLY need a through home inspection. Many times, naturally, upkeep is the last thing on someone's mind that is loosing their homeIt is very very difficult to get one of these banks to include any $ in closing costs, and OCWEN does not want to raise the price a bit to have funds to use for seller concessions, even though it does not affect the net price. Lastly, you would want to check what is happening to the values of the area. If they are going down or very level, and the rest of the city is going up, then maybe there is a problem that concerns the entire neighborhood. Any buyer needs to be careful, but a buyer of a FC home, needs to take a little extra caution.That being said, it is a wonderful opportunity to get a great deal on your home. Charles Link to comment Share on other sites More sharing options...
humdinger Posted August 9, 2005 Report Share Posted August 9, 2005 HeartRNI bought a foreclosure 1 year ago. Most important; have it inspected and be sure the inspector is liable for errors and omissions. some inspections are only liable for the amount of the cost of the inspection around $300( in my case). If I had found a major defect with the home $300 would not have helped much. Be sure they are qualified to ascess the plumbing, electrical and hvac. The banks sell these properties 'AS IS" they won't fix anything and will not be responsible for anything you find later on. If possible talk to the neighbors they may be able to tell you of past problems with the property.Be sure you understand what property taxes you will be liable for. In my county the bank pays a non-residential rate and cannot use any exemptions, what this meant for me was for a period of 1 year I payed twice as much for property tax, be sure they escrow the higher tax amount when you go to close on the property.In my area foreclosures were no "bargain" I looked at many before I came across one that was worth all the effort.Lastly Title insurance for you the buyer will be extremely important.Good luck Link to comment Share on other sites More sharing options...
firstsource Posted August 10, 2005 Report Share Posted August 10, 2005 Great advice, and especially the comment on title insurance. Owner's policy's cost so little in comparison to the knowledge that if a "unknown" claim to the property comes up, you-the new ower-does not loose. That is why lenders always insist on title insurance. Charles Link to comment Share on other sites More sharing options...
HeartRN Posted August 10, 2005 Author Report Share Posted August 10, 2005 Thanks for the info! Link to comment Share on other sites More sharing options...
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