Is Buying A House On Foreclosure a Good Idea??
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Answer:
Well of course there's strings. Those depend on the state laws and the bank holding the deed.
Forclosure is when someone messed up paying on their house and the bank then possessed it. The selling price is typically the remainder of the balance owed.
When the bank has these properties, they're to pay the taxes, and maintain cutting the grass and things like that. A hassle, so they sell them as quick as they can.
A lot of people do this as a buisness. They buy these houses, and flip them. Because of these people, who work closely with the banks, it is difficult to get the good houses.
Don't mess with a webpage, deal directly with the bank holding the deed. Too many people are trying to make money with this stuff by telling other people about it. So don't become a member of an online "insider" site or anything like that.
These houses are sold "as is" with no inspection. You cannot look inside, only outside.
You have to remember that someone just lost their house. So yes, the bank may be selling it for $10k, but all the windows could be broken, all the appliances gone, tore up floors, or the place could be completely filled with trash.
A friend of mine got one for $21k, and it took 4 giant dumpsters just to empty the house of trash.
When looking at a property, you need to do your research. Be prepared to spend some loot, maybe even triple what you paid, on gutting the house and refurbishing it just to make it habitable.
These are not cute little clean houses that are selling dirt cheap. These are usually houses in distress.
With an entire team of workers, these houses can be done and ready in 2-4 months. But if you don't have a team or a contractor's team on hand... you'll be in for a hassle and high expense.
It's a risk... because you may spend more than you planned, and you won't profit much. That will depend greatly on the location and the market value.
It's not unheard of to get a house for $10-$20k, drop $40k into it, then resell in a matter of months for $150k.
Just have to be smart about it.
for people loosing a home means not enough money and some times in case like that the up keep has suffered too paint pluming electrical etc...
SURE IF YOU HAEVE SOMEONE CHECK OUT THE MAJOR THINGS SUCH AS PLUMBING AND ELECTRICAL ISSUES YOU CAN GET GRANTS TO FIX UP SMALL THINGS
Yes... a major one: Sold AS-IS and with NO DISCLOSURES.
You better have an excellent home inspector because that may prevent you from the purchase if it is determined that the cost of repairs are too great.
Good luck if that is what you choose!
It can be a great deal! However, be prepared to repair the place. People who are losing their residence to foreclosure certainly did not maintain it.
A house inspection will show some of the defects, but there may (will) be others that will need to be fixed.
Also, be aware of other leins on the building and premises.
Just complete a due diligence on the property. If your are successfull in obtaining the property, then expect a few surprises. If you a handy, you'll be fine..
Buying a home on foreclosure is a very good idea. You just need to be careful when doing so. There are things to look for when you go about buying a house this way.
1) Condition- Watch for money pits. Check foundations and overall stability of the home. Get an inspector to go throughout it before purchase. Make sure you have an idea of what it is going to cost to fix up the home to be ready for sale.
2) Seconds on the homes-Watch for second leans on the home if you don't purchase the home from the auction and you didn't get a guaranteed title search then you are responsible for any and all second leans, second mtg., or any other type of lean that may be on the house.
3)Know the area- Know what your buying and what homes in that area are going for in the open market. You can get this info from sites such as www.realtor.com.
Just do your research and take your time it's not a race. Just find the one you like and go get it. By the way there are two ways to pick them up. The list of foreclosures are in your local tax office on a docket that is available to the public. Find the one you like, go look at it. Do your research then get the sale date off that same paper work. Or you can try to swoop it up before it ever makes it to the sale.
Hope this helps..Good Luck!
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