Buying Foreclosed Property

Comments

• WetCoaster

  April 2007

  There was an article on buying foreclosure properties in the Sunday Times about a month or two ago.
• Jazen

  April 2007

  Check out Foreclosures.com
  You can do a 7 day free trial. I did it, it seems best to wait, I think more foreclosures will be happening later in the year, with the subprime and arm resets.
• saengseon

  April 2007

  There is more risk with a foreclosure and you probably won't get a good deal.
  
  Banks pretty much take a loss on foreclosures. They want to get as much as they can out of the deal.
  
  I think auctions are a bad idea for the most part because of the few I have been to people pay way too much for stuff they have not fully inspected. For example, I went to one particular computer auction and someone bought what look like online like a nice package of a dozen laptops. When I inspected the laptops in person, they were all gutted junk.
  
  Often, when people are losing their home, they could very well trash it. Maybe pour sand down the drains, whatever. Often, at least in the past, banks would not allow you to inspect the property.
  
  So the risk is yours, but don't expect a great deal.
  
  I work in a bank analyzing foreclosures at a high level. I have heard the foreclosure stories of damaged property. To add to that, the house I bought, pretty much was a foreclosure. I bought it from a sub-prime lender, but it was marketed as a regular home on the market.
  
  The house is pretty banged up, all I could afford, but I got to inspect it and I knew what I was getting into. Did I get a good deal? No, I got a fair deal. Also, the subprime lender who was selling it (and had bought a few months efore I bought) screwed me over at the literal last minute of signing by changing their mind and not agreeing to replace the roof as part of the deal.
  
  So I was screwed out of many thousands of dollars. Why did I still go for it? If you have bought a house for the first time you learn about all of the stress, all of the work you have invested, all of the money you have put into it (inspection and so on). Here you are one step from the finish line. So I bit my tongue and bought.
  
  In the end it was still a fair deal. And my kids wanted the house. My fiance wanted the house. I wanted the house.
  
  Watch out for foreclosures. I don't recommend them. Also, watch out buying a home from a subprime lender.
• saengseon

  April 2007

  Are Foreclosures a Good Deal
  
  [Note: Please don't post the entire contents of a website. Just the link will do, thanks. - LHR]
• Dan C.

  April 2007

  Thanks for the link...interesting story.
  
  I spoke with a real estate lawyer friend over the weekend, who at one time purchased a foreclosure himself...not good stories. As a first time home buyer, I have decided against the buy, as there are too many issues I could run into (The main one being financing, thanks subprime idiots!)
  
  I am just going to wait another couple years, save up some good cash, and buy at rock bottom.
  
  Thanks!