Are foreclosure homes really that cheap?
Question:
1. The price you see on Yahoo Real Estate is sometimes way below $100,000 for nice 3 bedroom homes in coastal California, are those homes really that cheap? I've lived in Southern California almost my whole life, and I KNOW houses aren't that cheap, so why are they saying they're only tens of thousdands of dollars?
2. What are the other fees, charges, payments that I should research and look out for when buying a foreclosure?
3. Is there anywhere (besides YA) that I can get free Real Estate advice and help? We don't even know the city we want to live in, so I'm not sure if finding a local realtor would be right for us. (If you have advice, maybe you'd like to volunteer to offer some pro-bono help?)) :)
~Thanx!
Answer:
From personal experience, the best savings you can get range about 20-25% below market value.
There are two types of foreclosures, government foreclosures and bank foreclosures. Govt foreclosures are due to failure to pay property taxes and bank foreclosures are due to failure to pay the mortgage.
There is one main site for both govt and bank foreclosures, you can find free listings here:
http://www.investingwithoutlosing.com...
Before you invest though, please make sure you know how to do your due diligence and proper research. Look for the chain of title, liens, assessments, bankruptcy issues, etc. Because you trap yourself into paying more than what you expected. For suggested reading, go on amazon or another bookstore and take a look at Complete Guide to Real Estate Tax Liens and Foreclosure Deeds: Learn in 7 Days by Don Sausa [isbn 0978834682]. It has some good checklists and examples on how to research.
get a real estate lawyer. that way you won't get screwed. you want to get an inspection done on whatever house you want to buy, since there are MANY reasons for for-closure. it could be that the house is in terrible shape, or that the owner couldn't pay the mortgage. you never know.
BTW, you get what you pay for. a free lawyer is not necessarily a good thing.
Any real estate agent or broker in your area will help you pro-bono. They are nto directly paid anything. You aren't going to be able to buy a foreclosed home w/o thier help.
Foreclosures are selling for their market value, they are "short" because people owe more on them then they are worth. About 20% of the homes in the MLS are foreclosure.
The first thing you should do is get pre approved to see how much you can afford. than you want to look at your employment and if you can commute from a different city or make solid arrangements. Finally you need to contact me and Ill get you solid information you can bank on without any charges. visit my partners links on my website to look at homes all over southern california. we specialize in short sale transactions and have a solid list of REO( foreclosed) homes.
www.greatwestcapital.com
absolutely not, banks market them at same rates as any other property in the area. it's very seldom you will find a foreclosure at a great deal as they say. if you are finding homes on web that are just Way under market, and they are still on the market, you need to realize they are still on the market for a reason, and if so you don't want them.
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