What is Foreclosure ?

Question

Is it true I can get a house a 300,000 around 100,000 and remodel it and sell it at its market value

Answer 1

Yes. Alot of people are doing this now. It's called "flipping" and they actually have a couple of shows about people who do this. You just have to be alert and know when to buy a place. If you look on ebay you can get places in PA for like 15000. They are trashed but ones you put some money into the remodeling you can sell it for 200-300 thousand.

(The shows are on DIY and TLC)

Good Luck!

Answer 2

NOOOOOOOOOOOOOOO.

Don't invest in anything that you hear about in an infomercial you see at 3:00am.

Answer 3

If you can buy it at $100k that IS the current market value by definition.

That is the amount at which it is selling.  

That is not to say you can't put time, money, and work in to a house with remodeling and make a profit but it is no where near as easy as you are trying to make it sound.

A whole bunch of people have gone bankrupt lately trying to do that when the prices fell.

Answer 4

Foreclosure happens when a loan is in default and ownership it returned to the lender. Yes you could possibly get a deal like that but on the other hand you could buy a house that for some reason you just can't unload, especially in todays market. It's risky business regardless.

Answer 5

Foreclosure is when the owner defaults on their loan (doesn't make payments anymore). The ownerhship of the property transfers to the bank, since they provided the actual loan to begin with. The bank will sell the property at a greatly reduced price to recover some of that original loan. If you qualify you could get a fantastically low priced property and turn it around for profit when the market is in an upswing.

Answer 6

Foreclosure is the legal proceeding in which a mortgagee, or other lienholder, usually a lender, obtains a court ordered termination of a mortgagor's equitable right of redemption. Usually a lender obtains a security interest from a borrower who mortgages or pledges an asset like a house to secure the loan. If the borrower defaults and the lender tries to repossess the property, courts of equity can grant the owner the right of redemption if the borrower repays the debt. When this equitable right exists, the lender cannot be sure that it can successfully repossess the property, thus the lender seeks to foreclose the equitable right of redemption. Other lienholders can and do use foreclosure, such as for overdue taxes, unpaid contractors' bills or HOA fines.

The foreclosure process as applied to residential mortgage loans is a bank or other secured creditor selling or repossessing a parcel of real property (immovable property) after the owner has failed to comply with an agreement between the lender and borrower called a "mortgage" or "deed of trust". Commonly, the violation of the mortgage is a default in payment of a promissory note, secured by a lien on the property. When the process is complete, the lender can sell the property and keep the proceeds to pay off its mortgage and any legal costs, and it is typically said that "the lender has foreclosed its mortgage or lien". If the promissory note was made with a recourse clause then if the sale does not bring enough to pay the existing balance of principle and fees the mortgagee can file a claim for a deficiency judgement.

Depending how bad of shape is the house. Yes you can sell it value but depedning on the market you might not get the value that you want due to the market is going down