Buying bankruptcy or foreclosure home...which is best?
Question:
I am very interested in purchasing a home. I've heard of bankruptcy and foreclosure homes. Could you tell me the difference between the two and which is best to purchase. I am in the process of rebuilding my credit as well. Where can I get a loan? I've check with HUD but not sure if that is the best route. Any suggestions please reply. Greatly appreciated for taking the time to read.
Thanks!
Answer:
Congratulations. Buying a home is a really smart thing to do. I recommend you read something like Buying a House for Dummies (no offense intended) to learn the basics. Many credit unions have first time buyer seminars that walk you through the process. Learn all you can, and don't rush. Some tips: buy a newer house @ 20% below market value in a great location, in a great neighborhood. Always get a property inspection. For your first house, you may want to get a real estate agent to help you, one whom you find knowledgeable, honest, and easy to work with. He or she shouldn't pressure you. Wish you the best.
P.S. Once you buy the house, go to www.hughchou.org to access calculators that compare your savings under different interest rates, terms, etc., and how to pay off early.
The Department of Agriculture has the Rural Housing loans for 1st time buyers in rural areas. Check with them.
Otherwise, by a home you can easily afford that you're comfortable with. Whether a home comes from bankrupcy or foreclosure is less important than you being able to afford it. So that you don't wind up in bankruptcy or foreclosure.
It is a lot easier to buy a home that is IN foreclosure because you can negotiate with the seller and or their lender or the lenders attorney. After a house is foreclosed on and the lender takes it back or HUD takes it back these houses go up for public auction to the highest bidder. Egos make auctioning a good deal for the owner..because they often get MORE then the house is worth! A bankruptcy sale has to be approved by the bankruptcy judge..a lot more red tape. Hire a good Realtor, that knows about foreclosures, preforeclosures and short sales. Their services should cost you NOTHING! They can then help you through the whole process.
Good luck!
Vicki Watzlawick
Broker Owner
Exit Platinum Realty
Illinois Real Estate
www.vickisdreamhomes.com
For bankruptcy related information try
http://usa-legalcare.blogspot.com/...
And for buying home, try
http://www.realtyhelpusa.com
Trust me they are good
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