Does anyone know about foreclosures?

Question

well my sister and i live with my dad at my aunts home and he is thinking of buying a home so that we can move out. however we are wondering about foreclosure homes. has anyone bought one if yes for how much and what do you pay? if yes what is the process? are there any hidden charges? what about auctions?and does it really sell for that price or does the price raise? app

Answer 1

foreclosed homes do go for less and it is true, my sister bought her condo on foreclosed terms and got it way less then the worth..try government listenings or HUD homes at a local real estate agent they can help you with your plans and options and have many programs out there with no or little money down on making your purchase. good luck

Answer 2

Woooo!  I hear the excitement in your voice!  Buying a foreclosure could very well be a good idea for you folks. What your dad should do first is talk with several lenders to see what programs they have and which one would work best for him .  Next you will need to work with a Realtor who has experience selling foreclosures. Listing them is different. Each lender does business differently. You want someone who has sold these before.  Once you're qualified by a lender, and find a Realtor to work with, it's only a matter of time before you find a home.  Make sure Dad has a inspection done on the home he wants to buy. You dont' want any costly surprises after moving in.  

As for auctions, well he could try that if he has experience, but most lenders will outbid him.  No hidden charges at these auctions, but what can be hidden are other liens on the property that may not be lender related, such as mechanic lien.  Whatever they are asking at auction, is generally what they sell for. But keep in mind, if you're looking at stuff on line, it may not give you all the liens on that property in one spot.

If I can help further, just email me.

Answer 3

Foreclosed homes rarely sell at auction.  Usually, title reverts to the bank and they list it for sale through a realtor.  The buying process is basically the same as a "normal" real estate sale.

Answer 4

Dear CSU student,

        From this CSUN cousin, I recommend you seek to find a real estate agent or two familiar with foreclosures, short sales, REO and auctions. Probably hard to find anyone with deep experience with all the above.

        If you are purchasing a home "in" foreclosure before actual foreclosure you are dealing with the present property owner. For the owner to accept less than the amount owed on the mortgage, you need complete a short sale requiring consent from the lender. THESE ARE RARE AND FEW IN BEING APPROVED. I would walk and not attempts a short sale as a Buyer because you have zero leverage with the lender.

      A bank or lender owned property sometimes referred to as an REO (Real Estate Owned by Lender) has the right to set a price or readily and directly respond to your offer.

       Auctions are usually attended by value ignorant individuals without a clue as to value who wrongly believe the auction process will provide an undermarket or market value property. Too often, I see the excitement cause rational people to make excited ill-informed bids. If you go this route be certain to have financing arranged before attendance. This is a pretty good rule. You should obtain a financing committment before you shop to ensure you will be able to complete your purchase SAVING YOU DISAPPOINTMENT and time. Auctions are bidding processes and it is rare for you to obtain property at the opening bid unless that bid is already too high.

      As a Californian you must understand that home prices have been predicted to continue in decline for two more years. This compels me to wait until prices stabilize. They are in a full and complete downward dive, except in the San Fransisco area where prices seem to be fighting the trend.

          Wait and use the time to learn the real estate market you wish to enter. Realtors will push you to buy now....This is their means of earnings. Time is on your side.... The numbers of foreclosures is still on the increase and HARDLY ANY MARKET EXISTS TO PURCHASE THEM THROUGH ANY MANNER.