Desoto County, MS Foreclosure sales?
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I bought one that way in California about 10 years ago.
You may or may not get a deal. Many times they are in great need of repairs or updating. Check out the home first.
The Bank wants to get their money back and usually will not go under the money they need back. But once in awhile you find a steal.
You either need aproval papers for the loan amount by your Mortage company. Find out the value of the property and be approved for at least that much. Pre-approval papers.
Some require full cash at auction close. You have to literally show up with a suitcase full of money. That is what we did.
We said we would go as high as $200,000. and that is what we carried with us. Risky but many require cash on hand.
So check it out.
Generally, you will get the home for the loan amount. so the former buyers lost their down payment and any equity. So you need to find out what they paid. If they bought it in the last few years, under five, they won't have much equity in it. And in the last few years with all the creative financing, they may not have had to come up with much down to get in.
This is bad for you.
You want the most equity and most down.
Example:
They bought home for $250,000, came up with $45,000 down and they have been paying payments which $1,000 was applied to the principle for ten years. That equals the $45,000 down and the $120,000 equity.
This home will sell cheap by the Bank as they have most of their money. Bank like to unload as they are not into property management.
If the same home was $250,000 and the down was $15,000 and they only paid one year at $1,000 toward principal that would be $27,000. The bank must get at least, $223,000 back.
You see how this works. The best deal is when the Particular Bank or Company has way too many foreclosures then they are willing to dump some and lose money. But it is hard to know when this is the case. Check them out well first.
Why don't you try calling up the courthouse that handles the foreclosures? They'll give you the best info for their area. I've never bought a foreclosure house at an auction or anything like that, but I would "speculate" you may have a difficult time getting a mortgage because a lot of those houses are in poor condition. Might be best also getting pre-approved and see what their terms/requirements are reguarding that. Plus, I think-could be wrong, but generally I don't think you're allowed to do a "walk through" the house, so you have no idea what you're getting yourself into. I think most of the people that buy those houses are investors and such that have the cash to pay for it with out the help of a bank. Just my opinion, could be wrong.
My parents just bought a house down in that area, Hernando. They had a hard time finding a decent house, mom said all the houses they looked at needed a lot of work.
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