Has anyone purchased a foreclosed home?

[Rockstar Mom]

So I’ve finally reached a place in my life mentally and financially where I’m ready to purchase a home. I’m happy because I’m turning 30 this summer and this was on my list of goals to accomplish by 30.

My first choice honestly is a (non condo. But one of my coworkers purchased a foreclosed home that’s in my condo price range, and has double the room and space. I looked some up, and I’ve seen a good amount in my price range, so now it has me thinking

I know there’s pros and cons. I was just wondering if the good outweighs the bad?

 

[O.T.I.S.]

Good question

Subs

 

[Rockstar Mom]

 

[paperbag]

Yes. Its was 10 years ago tho. Basically got an almost brand new house for 50% off, was built in 2005 & sold for 305k, I paid 149k.
Are you looking at short sales, foreclosure auction or actual reo?

• Inspection inspection inspection, don't let them try to pull the "no utilities will be turned on" bs
• Title search, make sure there are no liens
• If there's an hoa make sure its in good standing

 

[flea]

So I’ve finally reached a place in my life mentally and financially where I’m ready to purchase a home.

Lying like shyt

 

[mson]

Yes. Its was 10 years ago tho. Basically got an almost brand new house for 50% off, was built in 2005 & sold for 305k, I paid 149k.
Are you looking at short sales, foreclosure auction or actual reo?

• Inspection inspection inspection, don't let them try to pull the "no utilities will be turned on" bs
• Title search, make sure there are no liens
• If there's an hoa make sure its in good standing

Could you elaborate?

 

[Rockstar Mom]

Lying like shyt

Broke people always mad

 

[Rockstar Mom]

Yes. Its was 10 years ago tho. Basically got an almost brand new house for 50% off, was built in 2005 & sold for 305k, I paid 149k.
Are you looking at short sales, foreclosure auction or actual reo?

• Inspection inspection inspection, don't let them try to pull the "no utilities will be turned on" bs
• Title search, make sure there are no liens
• If there's an hoa make sure its in good standing

I was looking at auctions, but my coworker already explained that with auctions I won’t be able to do a home inspection first. So I’m looking on places like Zillow and Trulia that have foreclosed homes that are owned by a bank. I know the bank would have to pay off any liens before they can sell.

 

[Rockstar Mom]

Have you ever bought a forclosed home?

 

[MoveForward]

Both foreclosed homes I bought were move in ready, the original owner kept them immaculate

 

[paperbag]

Could you elaborate?

In a regular sale the home is usually still occupied so all utilities are on and you can have you home inspectort come in and test the water/electric/gas and a.c. for any problems. When the bank owns the home, they have everything turned off, and don't want to pay to have it turned back on every time a buyer comes with an offer, because they are cheap or they already know or suspect there is a problem. If they are unwilling to turn it on or even let you pay to have it temporarily turned on, you should walk away. This would all be specified in the contingencies of your offer.

I had offers on homes that I had to cancel due to a leak inside of the wall during inspection and another where all of the electrical lines were cut.

 

[NkrumahWasRight Is Wrong]

Yes i bought a condo in foreclosure

Less wiggle room to negotiate with banks but youll still probably save money

Make sure any outstanding HOA dues are paid by the bank before closing if its a condo

Get a house inspection (obviously) and get experts in there if there are problems who will give proper documentation to the problems

My house inspector said a pipe needed to be replaced and i got documentation of it and i negotiated the bank down an extra 2750 to cover half of the costs

 

[Mac Brown]

Yes. Its was 10 years ago tho. Basically got an almost brand new house for 50% off, was built in 2005 & sold for 305k, I paid 149k.
Are you looking at short sales, foreclosure auction or actual reo?

• Inspection inspection inspection, don't let them try to pull the "no utilities will be turned on" bs
• Title search, make sure there are no liens
• If there's an hoa make sure its in good standing

This!!!! This!!! This!!!

I went through the same thing back when I was around 25 with a townhome.

 

[Ezekiel 25:17]

I'm a big fan of real estate, though I'm not very knowledgeable on the subject.

What some posters have said are true. Auctions don't let you inspect and that's the most important aspect. Also I think you have to pay all the taxes on a foreclosed home bought from the back. It could be a year of property taxes or something. Not sure.

I wouldn't rush into it either breh, if you don't find anything just be patient. People are saying another recession is supposed to come in 2-3 years, which means even cheaper houses.

 

[sportscribe]

Bought one through Fannie Mae. One of the requirements is that I had to be a tenant-owner for an amount of time. The property (2 bedroom condo) value had doubled before resale.

It was a fixer-upper. It had some prior flooding which had caused some molding so it REALLY reduced the property value. Did all the HVAC, brought some Honduran dudes through for renovation and it was brand new.

When dealing with condos, always check the fine print on the HOA. It was written in mine that owners couldn't rent it out for short stays.

There's gems out there if you know where to look. Try an attend a foreclosure auction at your local courthouse. Just make sure you're very liquid.