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View Full Version : Home and Auto Purchasing a house on foreclosure


RockChalk
02-10-2010, 01:30 PM
Anyone ever done this? I was just looking through a list of foreclosed properties in Douglas County and was curious as to what process you go through to look at/buy one?

What are the drawbacks of buying one?

Any help would be great appreciated!

wilas101
02-10-2010, 01:50 PM
My house had been foreclosed upon before we bought it. it was owned by some bank in florida and they had a realtor that showed it. It was handled just like buying any other house as far as I could tell.

I'm guessing the list didn't tell you what realtors were handling the properties so you could contact them for a showing?

RockChalk
02-10-2010, 01:52 PM
No, unfortunately it only lists the bank that owns the property.

Earthling
02-10-2010, 01:57 PM
No, unfortunately it only lists the bank that owns the property.

Call the bank??

MahiMike
02-10-2010, 02:08 PM
There are 3 types of foreclosures; pre-foreclosure (before the auction), foreclosure auction, and Bank owned (REO).

Pre-foreclosure (or short sale) is a pain in the butt and may or may not work because the bank must except your offer in addition to the current owner having to prove they can no longer afford the home. Takes 6 mos to a year.

Foreclosure auction is a cash only deal and you can NOT see inside the home or perform other due diligence. Recommended only for the experts.

Bank owned is the way to go these days. Matter of fact, if I were in the market for my own home, this would be the only way I'd buy in today's market. Drive around neighborhoods you want to buy in and write down every realtor's name and #. Call them and tell them you're only interested in REO's. Make offers at 50% of asking price. Lotsa smokin' deals out there right now.

BTAU
02-10-2010, 02:12 PM
We bought a forclosed home a few years ago before the huge housing market collapse. This may have changed with that collapse, but one thing that banks used to be known for was sitting on offers until a better one came along...especially if you didn't meet thier original asking price. A friend of mine submitted an offer on a forclosed house and it took three months to hear back about his offer.

ferrarispider95
02-10-2010, 02:52 PM
I have bought a few REOs from banks. The process depends a lot on the bank you are dealing with. They are tougher to deal with a traditional purchase, but the hassle can be worth it.

Also most properties are sold as is.

Great Expectations
02-10-2010, 02:53 PM
Banks don't want to own real estate, but they won't likely take an offer of 50% below the asking price. They will probably insist on a contract that the house is sold as is, meaning that they won't make any repairs. They won't want to sink any more money into it even if it would likely mean a higher selling price. Banks aren't in the business of buying and selling homes, they just want to get rid of the ones they own.

A lot of foreclosed homes are now owned by HUD (which is different than a local bank owning it), they will be more likely to accept an offer from you if you intend to live in the house.

http://www.fanniemae.com/homepath/homebuyers/buying_fanniemaeowned.jhtml;jsessionid=SYA1XPJQVEXXNJ2FECISFGQ

Earthling
02-10-2010, 02:59 PM
Banks don't want to own real estate, but they won't likely take an offer of 50% below the asking price. They will probably insist on a contract that the house is sold as is, meaning that they won't make any repairs. They won't want to sink any more money into it even if it would likely mean a higher selling price. Banks aren't in the business of buying and selling homes, they just want to get rid of the ones they own.

A lot of foreclosed homes are now owned by HUD (which is different than a local bank owning it), they will be more likely to accept an offer from you if you intend to live in the house.

http://www.fanniemae.com/homepath/homebuyers/buying_fanniemaeowned.jhtml;jsessionid=SYA1XPJQVEXXNJ2FECISFGQ

I bought a house on the HUD list once. Great buy. If its the same now you submit a concealed bid and the high bid gets it. You might check into that from the Housing and Urban Development in your state for a list of HUD homes available.