What's the deal on "pre-forecloseure homes?"?

Question

My husband has been re-stationed to Fort Dix and we are actually looking for places in South Jersey and found some really nice homes that almost look too good to be true. Most all of these are "pre-foreclosure homes" and we're not really sure what we're getting into? Is it advisable to go with something like this or should we go with our gut and recognize the deal is actually too good to be true?

Answer 1

The whole foreclosure thing is very sad. Pre-Foreclosure is when the home owners have just given up and their real estate agent in uninformed!  An informed agent would have educated themselves and worked with their lender for a modification instead of a short pay.  In California, a pre-foreclosure is a "short pay" The best advise I can give you in a short e-mail is #1 do not fall in love with one house #2 pick several because most short pays if accepted by the lender take 3 to 6 months and have an out so you can bid on other homes in case you get tired of waiting. #3 Consider a home which is already foreclosed, better deal, faster close.

Answer 2

The market is good for buying some houses now, but I can tell you a horror story of a couple that purchased a foreclosure. It was seemingly one of those "too good to be true" deals. Long story short it was! After they bought it, had it pass inspection, etc, it wasn't until they moved in that they realized the previous owner had stripped it of everything beneath the flooring. There was no wiring, plumbing, etc. I asked my realtor if they had a chance to get out of the deal. She said not with specific foreclosures. The couple bought a shell of a house. It ended up costing them thousands. Buyer beware would be my advice. and good luck.  

Answer 3

You can get some great deals on pre-foreclosure places but you need to know what you are doing (or get lucky).  More often than not you will end up chasing dead ends for months or settling for a deal that isn't that great.  Put simply, its doable (to get a great deal) but its tough.

If I were you I'd search out regular deals instead as this is just not worth it, but if you have alot of free time - go knock yourself out.

Answer 4

No, in real estate there no such thing as too good to be true.  Because when you find what you want have your attorney look over all the paperwork and have the property inspected by a certified home inspector.  Now it's up to you to negotiate a good low price.  I've been doing this for ten years and I only look for too good to be true properties. You might ask the bank if they have any REO's (real estate owned) this way you can really get the price way down because the bank doesn't make money when they own the property and there's no income. That's why they call this a non performing asset.

Answer 5

Pre - foreclosure  are  the  people  that  are  delinquent  on  the  mortgage .

You   should  plan  on  being  in  a  home  5   years  if  you  are  buying .  (  or  more  under  the  new  collapsing  mortgage  market ) .

As   a  military  family ,   are  you  willing  to  stay  with  the  house  if  he  is  transferred  in  the  next  5  years  ?

Or   take  a  loss  if   he  is  an  you  can't   sell  ?

It   may  be  a  good  deal  if  you  do  not  have  to  sell  for  10  years   but   count  on  a  loss  if  you  have  to  sell  before  then .

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Answer 6

Preforeclosed home are a short sale. Short sale's are when the owner is selling the home for less than they owe on it.

the bad part about that you have to wait for bank approval, this can take months to close and get through escrow, plus some of the legal stuff that goes with it.

Be safe get the advice of an Attorney.

  A word of advice, check what homes in the area are selling for to see if it really is a bargain, a good Realtor will be able to help you there and to foreclose on a home it cost the bank on an average $80,000.00 for the legal process