Foreclosed Homes So Cheap? REALLY?

Question

I was looking on a website and it listed foreclosed homes at cheap as $12,000. Now I was wondering, is it really possible to buy those homes THAT cheap? Or is that website some sort of scam? Is there some sort of deal, like you just have to pay cash, and in full. And how does one go about getting into one of these homes, anyone know the answer? Thanks in advance! :)

Answer 1

Depends where the house is.

I've seen foreclosures in the city of Detroit going for less than that. But who wants to live there. That's why they are so cheap.

Answer 2

Call your local bank and ask for their oreo department (other real estate owned).

Some are very cheap but they need a lot of work or are in a bad neighborhood.  You can get a good deal but you will have to hunt for it.

Answer 3

Yes it is possible to get a house very cheap.  I not familiar with the  market in Sonoma, CA, but that price of $12K maybe too low (isn't that Wine Country)?  In SoCal, most banks are letting houses go for around 1/2 of what the original loan cost them.

If you have a trusted Realtor you have worked with in the past, or is a friend, they will be able to help you out w/ a list of foreclosed homes.  

BTW-the process is almost the same in buying a foreclosed home (including securing a loan if y ou're not paying cash), just keep in mind any liens that may be on the property when you are purchasing it.

Answer 4

The amount of $12,000 you were looking at was probably the amount owed on the mortgage like you indicated. If you have cash and can buy on courthouse steps when they sell it, you can pick it up for that amount. If it is in a nice area or a great "steal" you can expect that other buyers will be their. The highest bidder gets the house.

The reality is that in most cases the mortgage co buys the property back at courthouse steps because no one bought it (probably because potential buyer  could not make enough profit)

As a buyer, hiring a Realtor does not cost you one red cent. Find a Realtor who works exclusively with foreclosures and you will find a great deal wherever you want to live. 2 links below, first one is to find your Realtor who specializes in selling foreclosures and the second one is to research properties. (both sites are free, you don't have to pay for information)

Texas Real Estate Broker