So a foreclosed home... educate me please!
- Thread starter The Broken Regal
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I won't be affected down the road, the reason they are sold for cheap, is the bank wants to get rid of it quick, and sometimes they sell it for the principal that was left on the loan, aka a person bought home for 200k, paid off 80k, now the bank is gonna sell it for 120k to get rid of it quick and still break even...... oversimplified i know, but you get the idea
From my understanding, it's basically as it was stated. The bank wants to get rid of it to try and get the money that was owed. Buying a foreclosed home shouldn't effect the value of the house. You basically get a dirt cheap home because somebody else couldn't afford it. Say our economy picks back up and it's a sellers market, then you will be getting a profit from what you paid on the foreclosed home.
It isn't like the infomercials though, they won't go lower than they think they could get, like if the house in the above example would sell for more than 120k, for sure they would, just in todays economy, many banks are tring to not hold on to property, and willing to sell at cost, to not loose money (like the value going down even further than it would).........
You also have people now though, selling before going into foreclosure, usually those you get the best deals, cause the want more, but will settle for just more than they owe to not have a foreclosure on their credit
You also have people now though, selling before going into foreclosure, usually those you get the best deals, cause the want more, but will settle for just more than they owe to not have a foreclosure on their credit
Ok so you have a neighborhood full of $200-220,000 houses (for example) and there's a foreclosed house in the mist of them... ok, so you can make an offer on the foreclosed house for 150,000 but don't think just because it's a foreclosed house that the bank is going to take the offer. They'll still turn down low balls, they aren't hurting as much as those stupid commercials want you to think, BUT, that doesn't mean they won't take it either. There are so many factors that go in, it's just not even funny. It's everything that's been said so far plus this, and most likely plus even more...
It's just like the commercials I hear on the radio. I just bought a 4 bedroom, 2 car garage house for 30k dollars!!! YAY!!!! What a joke, foreclosed houses do usually sell for cheaper, but these stupid commercials are making it sound like you can buy a forclosed house by just charging it on your visa.
Yup...There's a lot of small things that are factored in. On a foreclosed house, you CAN get it for a lot cheaper than the value. BUT doesn't necessarily mean the bank will take the offer. Another factor is that it depends HOW LONG the house has been on the market. If the bank has a foreclosed house that's been on the market for a while (let's say about a year or so), then you have a better chance at getting it for a cheaper cost than the value. The bank will most likely just want to get rid of it.
There's a lot of things that go into buying a house. Foreclosed or not. The bank will still run a background/credit check regardless the cost of the home. You still have to put so much money down (especially because the way our economy is), and if your credit isn't all that great, then you probably most likely won't get approved. (thanks to the economy)
F-cking x2, i can't tell you how many people i've talked to that think they can charge a GD house on their credit card lol. Their smiles turn right around as soon as i enlighten them on the truth haha. In this world, if it's too good to be true, it is.
they usually need more work and may have back taxes or something i think. it's nothing like a salvage title that has some stigma on the record. do not be so foolish to assume that in 5 years it's going to be worth double what you pay for it or even more than what you pay for it. and you'll have to pay taxes and maintain it. historically homes have increased at the same rate as inflation. if i was to make an offer today it would be for an inflation adjusted value based on a 2001 or prior sales. i would not expect to purchase a home to make money, if you have money burning a hole in your pocket i'd put the brunt in short term treasuries or a high yield checking account and another chunk in gold/silver.
I'm sure more foreclosed homes will be popping up. It might sound like a deal compared to other homes in the area but like other people have said, the bank might just want a quick sale. I hear alot of the times, the foreclosed homes need alot of work, because people trash them before they get kicked out. Im not a Realtor, that's just what I hear. As with anything you see for sale, if its been on the market for days, its not a deal. If it was, it would have been sold already. Because of the internet thousands of people have access to view stuff.
There are a lot of foreclosed homes that are in perfect condition, the owners just went delinquent and the bank took over. I've been looking at getting a foreclosed home for a while now, its very hard. Each house will have multiple offers and the bank takes the best one (obviously). It's like a huge bidding war for these cheap foreclosed homes.
There are some really good deals out there though.
There are some really good deals out there though.
One problem with foreclosed houses is that a lot of the time they are in poor condition. If the people who used to live there couldn't afford their mortgage they probably couldn't keep up with general maintenance. You might be able to buy the house for 25k less then the market value but you might have to put that much back into the house in repairs. i bought a house last year that was a foreclosed house for about 50k less then other houses in the area. but in the last year i've had to get the roof redone, replace the front door, replace a bunch of windows, garage door, breaker box, and some plumbing related things, eg sump pump and water heater.
I do drain tile and foundation repair for work...(at least when there is work). I could have done the sump pump for ya.
On a related topic. I know of a house that's for sale (well not sure anymore) that was selling for $150k in Wonderlake. The houses in the subdivision is worth $250k +. The owners I guess just want to get rid of it. (they haven't put it on the market yet, though. But they told my friends dad about it). House is huge. If I had the money/income right now...(at least a stable income), I would go for it.
but what also sucks, is when houses in those neighborhoods go for usually around 200k-220k and some sells desperately for 130k-150k, it hurta the value of that neighborhood immensely.
Same thing happened in my neighborhood... family sold their home, which was the same model as my families, out of desperation for well 125k what it was worth. We had just then a refinanced and our houses value took a large drop b/c that house sold for so low...
Same thing happened in my neighborhood... family sold their home, which was the same model as my families, out of desperation for well 125k what it was worth. We had just then a refinanced and our houses value took a large drop b/c that house sold for so low...
Smokinhot
3-man rules!!!!
originally the bank was trying to sell my house for 140k 1-1/2yrs ago noone bought and when i looked at it they wanted 70k.... i put a bid in for 57k and they look it. The market is down so the value of the house WILL NOT be what it should actually be when/if it goes up. Mine appraised for 60k and i've already updated it so when it goes up i will still make more than what i paid for it
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