Any Experience with these what are the Pros and Cons?

Question

Think that foreclosure homes , and hud homes are a scam or just plan impossible?

Answer 1

Foreclosures are not a scam but sometimes banks can be hard to deal with.  The pro is that you might get the house for a cheaper price.  The con is that you have to buy it as is.  The banker did not live in the house so he cannot tell you how old the furnace is or if the roof leaks, etc.  You should have a home inspection done.  Another thing about foreclosures is that the bank will usually hold out for the highest price so you don't always get a quick response to an offer.  If you make an offer put a time limit, like you want a response to your offer within 48 hours.  That way they can't just sit there and wait for a week or two to see if something else comes in.  It's not impossible but be patient.  Also, they usually require proof of funds so if you plan to get a mortgage then you need to be pre-approved.

Answer 2

I bought 2 HUD homes.  Good prices.  I learned a lesson.  you have to have cash to do the repairs.  The cheapest repairs were $14,000.  When i was finished, i had new carpet and countertops and paint.  But i would have done better just to have bought a "nice"  house that wasn't a HUD home for less if i had figured-in the $14,000.  

I sold one for a profit and lost money on the other.  The market went sour and it was tough to sell.  I should have moved in and kept it.

Do one for the experience.

Answer 3

HUD homes aren't a scam, but many of the so-called services that offer to send you lists of HUD homes are.  The homes are legitimate, however.  Depending on where you live there can be a lot of competition for them and they tend to favor owner-occupiers rather than investors.  Some good deals are available, especially in less desirable neighborhoods, but sometimes competition keeps the prices at market level or even above.