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Slowtwitch Forums: Lavender Room:
Buying Foreclosed Property

 
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Flanagan

Oct 8, 08 17:41

Post #1 of 4 (184 views)
Buying Foreclosed Property Can't Post
Prospective first-time home-buyer here. There are a number of foreclosed properties popping up. Anyone have any tips? In a market like this, where nobody can get credit, is any offer too low? Am I crazy to offer 50-60% of the assessed value of the home? Its been sitting there for a while now, and I know its gotta just be burning a hole in some bank's pocket.

Anyone on here bought one before? Share your experiences.


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last tri in 83

Oct 8, 08 17:55

Post #2 of 4 (172 views)
Re: Buying Foreclosed Property [Flanagan] [In reply to] Can't Post
We have been involved in sales. The bank owned properties are a bit easier to deal with than "short sales."

Be prepared to have to buy the house as is. They generally won't spend any money on it or warrantly anything.

Be prepared to have decisions by the seller take a long time.

Come in armed with estimates to support your discounts, like contractor repair costs. They like to have justification for dropping price. Discount enough for unforseen stuff as the banks usually have an ironclad "as is seller beware" clause in the contract.

If you have an agent you trust, might be good to use one. Doesn't cost you anything. They can be a source of marketing and comp data. If the house falls into the entry level market, be prepared for competition or multiple offers.

_____________________________________________
Conservative in exile.


Mito Chondria

Oct 8, 08 17:59

Post #3 of 4 (167 views)
Re: Buying Foreclosed Property [Flanagan] [In reply to] Can't Post
If I were you I'd make sure that I don't buy a foreclosed property "subject to". Make sure that you buy with Title Insurance.

The "good deals" are at the non-judicial foreclosure auction (if you live in a non-judicial foreclosure State) but you must be proficient in doing your own title search and know the rules for that. Your best bet is to look for properties that have been foreclosed and make low ball offers. If not accepted, ask for a counter offer and be prepared to walk away. Most likely Banks won't go for 50% of current market value but you never know.


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last tri in 83

Oct 8, 08 20:01

Post #4 of 4 (126 views)
Re: Buying Foreclosed Property [Mito Chondria] [In reply to] Can't Post
MC makes some good points. My comments assumed the bank already owned the property.

_____________________________________________
Conservative in exile.