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I’m looking into buying a home for $ 124,000 which is a pretty good price but the house is owned by a real estate company and is forclosured. I’m not looking to resell it for profit. I dont have too much experiance in buying homes so I don’t know exactly know what forclosure is.

So what exactly does it mean to buy a forclosure home and does it make a difference if I buy it cash?

Also, any other tips that might help me out.
Thanks!

5 Thoughts on Should I buy a house on forclosure?
  1. Reply
    HiddenBarb
    August 10, 2011 at 8:18 am

    INSPECTION necessary!!! People who couldn’t afford the payments on their house definitely could not afford the maintenance.

  2. Reply
    Chris P
    August 10, 2011 at 8:47 am

    There is nothing wrong with buying a house in foreclosure, you could really get a great deal and when you sell it you’ll probably get a lot of money out of the sell, referred to as equity in the real estate world. Just make sure the property doesn’t have any liens against it and isn’t in need of severe repair work.

  3. Reply
    RSR
    August 10, 2011 at 9:21 am

    if you can, you should. homes in forclosure are generally cheaper. forclosure means that the owner is unable to pay for the house and it is taken back by the bank.

  4. Reply
    Jason W
    August 10, 2011 at 9:47 am

    Do it! If you are lucky you can catch a home before it actually forecloses and help the owners out while you help yourself. You should look into the entire process.
    heres a good link: http://www.zillow.com/wikipages/WHAT'S-THE-BEST-WAY-TO-BUY-FORECLOSURE-PROPERTIES

  5. Reply
    Hopeful Home Solutions
    August 10, 2011 at 9:50 am

    A foreclosure home is one that the bank has taken back for non-payment of the mortgage. Make sure you spend the few hundred dollars and get a professional home inspection. Don’t cheap out, as it will cost you more in the long run! Give the bank a copy of how much the repairs are estimated at, and figure that into your price.

    You should be able to bargain a fair amount on the price, depending on how long it’s been on the market. The bank will usually take about 10% less than what’s offered, so compare that price to others in the area you want to see if it’s a good deal taking into the account the repair work.

    The bank should convey clear title with no liens. Your real estate lawyer or title attorney should verify this.

    It probably won’t make any difference to the bank if you buy it cash, but you can always get their “final” offer, and then ask them, “how much would you take off if I paid cash?” The answer may be $ 0 though, but it doesn’t hurt to try.

    Good luck!

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