Anybody ever buy a foreclosure?

Discussion in 'Family Life - Stories, Pictures & Updates' started by Livinzoo, Nov 18, 2009.

  1. Livinzoo

    Livinzoo Chillin' With My Peeps

    Mar 2, 2008
    Statham, GA
    We are trying to find a new home with land. Right now I borrow land to keep all my animals on.

    One house we will be looking at today is a foreclosure and will not qualify for an FHA loan. I read online that sometimes you can get a better deal on a foreclosure if you use the bank that already owns it. Then you don't have to pay for the appraisal and can some times get lower down payments or lower interest rates so they can keep the loan. Anyone do this?

    Also how much should I expect them to come down on the price?
  2. Julie08

    Julie08 Chillin' With My Peeps

    May 19, 2008
    Ontario, Canada
    I have purchased 2 foreclosed property, expect to find problems. Also, you will have to purchase "as is" which is also a risk, they do not have to disclose issued not like a home owner is suppose to (Most I dont think do anyhow) it will also effect your title insurance. For example if you buy a house as is and the septic is bad your title insurance will not cover your costs to replace that would be your responsiblity because you bought as is. The first one I bought was listed at 73,500 we paid 50,000 the second one was listed at 149,900.00 and we bought it for 140,000 in a three offer competing bidding war.

    DON'T use the bank that owned it already..... they already have sour grapes about the property, they already had it once and don't want it again the address is a sore thumb to them and they put you through the ringer. The first one we bought we did use the bank that owned it based on a recommendation from our agent and it was horrible! The last one we used our own bank and smooth sailing.

    I think you would want it apprased anyhow but I think an appraisal is about 150 bucks but most banks waive the appraisal fee anyhow.

    Make sure to get it inspected, specially because they seem to get neglected when someone is losing them and also because its "as is"

    I would also make sure I got a survery. See if you can get the bank to pay for it before you have a firm offer if the deal closes you could offer to pay for the survey or not.

    BTW I do live in Canada so not sure exactly what would apply and what would not about what I have said above.
  3. Sonoran Silkies

    Sonoran Silkies Flock Mistress

    Jan 4, 2009
    Tempe, Arizona
    Whether or not there will be disclosures will depend on state law and what the bank actually knows, which may or may not be much. You cannot be faulted for not disclosing something of which you were unaware. If you actually live in a home you are far more likely to be aware of problems that if you merely reposessed it.

    Earlier this summer my son made an offer on a bank owned home. There were definite issues that needed repair, but the bank was definitely not going to fix them (bad roof and resulting water damage).

    They were asking 130; he offered 140 and they countered with 150--pretty much just like what was going on with home prices before the bubble burst. He walked away from that, and later found a nearly identical home in much better condition that was not bank owned and there was no bidding war. He did still pay 150, though.

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