A question about foreclosures?

Question:

I noticed that foreclosures are listed at a relatively low price. I understand that the lender usually asks for the remaining balance of the loan, but do the houses actually sell for such a low price?
If so, how does one go about purchasing a house on foreclosure?
thank

Answer:
No: they don't go for low prices. If your credit is good, the lender is willing to roll the mortgage over to you. Where are you getting your information?

Foreclosure, if it is going for a steal will be picked up by someone that has money laying around. It is possible to get lucky and fine one that has been over looked. In a case like this, grab and make a quick profit.

Forclosures are done on the County Courthouse steps in an Auction fashion. The price goes where the market brings it. I have paid as little as 8500 US dollars for a 4 bed/2bath home and as much as 86000 dollars for a commercial shell on a good size lot. Depends who shows up for the auction and whether they are an investor or an end user. End users pay more money than investors.

So, they are not listed at any price but go where the auction takes them. You will need 20% when the hammer drops and settle up with in 30 days so have your money ready or lose the deposit.

Also try contacting local banks and ask them if they have any "Other properties for sale". I have and did buy these also. Good values sometimes when you can pick out a pearl.

Hope this helps

Try Homesales.gov I just bought a house no lie for $15,0000. It was built in 1912 and needs work but has lots of potential.

The prices reflected on the Notices of Default represents the amount of loan in default and ( in many cases) not the actual total loan amount owed on the property. Remember that, in some cases a home owner may borrow a 1st loan and a 2nd loan against the property.

If the owner has defaulted on the 2nd loan the notice of default will reflect that amount. (Same goes for the 1st)

If an investor buys this property at an auction under the impression that he/she is getting a significant discount, this investor will be in for a surprise. If the defaulted loan is the 2nd he/she will be responsible for paying for the 1st loan and any other liens and/or encumbrances on the property.

Rommel J. Mijares
Mortgage Consultant

A question about foreclosures?

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