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Is it possible to buy a home for $500?


scorch
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So, I was watching this infomercial last night claiming that it is possible to buy homes for as little as a couple hundred dollars through Government Tax Foreclosure sales. I know this sounds a little too good to be true, but so does raising your credit score by a couple hundred points right?

Although I am not in the market for a house at the moment, I am just curious about these sales.

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How much does the 'secret' cost? If They are buying houses for $500- why don't the just turn around and sell them for $1000 each? I would think doubling your money is a good investment!

The infomercial actually advertised books and CDs and such that shows you how to find, buy and sell the homes.

I would just like to know if it's legit. I'm really not sure about some of those commercials. I see advertisements for computers saying, "even if you have bad credit, you can have this computer that allows you to send/receive e - mail, browse web pages, download music, get viruses and more!"

Puh lease...

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They also forget to tell you that the Bank usually puts the first bid in on the forclosure...So they are going to get at least the loan value of the home. If the ownerscouldn't afford the payments what makes you think they could afford to take care of the home?

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  • 2 weeks later...

Be careful buying one of those programs for 39 dollars. They will sign you up for some type of monthly advice or tutoring and take money off your credit cards or bank account. They try to mentor people for anywhere from 200 a month to a 5000 flat fee. If you cannot resist the temptation to buy these products , use a prepaid credit card, or like citibank and BOA and Discover have a virtual credit card which is only good for one month. If you search ripoffreport.com you will see scams from almost all of these marketers.

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Remember, there is an unofficial network of professional buyers and real estate attorneys with virtually unlimited resources that pick over anything worthy. The crumbs are left for the unwary. You get what you pay for. It either comes with obligations that are priced in or some defect making it not a worthy investment for the big boys.

With that in mind, someone may buy one, get lucky, and make a few bucks.

When I was assisting lower end bankruptcy filers this summer, I'd see homes with fair market values of $5000. But they'd have $12,000 gas bill liens, $2500 water liens, and License& Inspection assessments of $5000+. In reality, the homes had a NET negative market value. These are the homes that get sold for $100.

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