Buying a forclosed home

**Kingweb50** · 05-12-2008, 06:39 PM

I was looking online today at forclosed homes and some of the websites say the repo amount is 339000 and market value is 674000 does that mean its for sale for 339000. Has anyone ever bought a forclosed home?

**StoneGRMI** · 05-12-2008, 06:53 PM

Call on it. I sell foreclosed homes daily and we have to clearly state the price. It sounds like 339000 is the sale price or amount left on mortgage.

**damiongage** · 05-12-2008, 06:54 PM

I deal with them daily...Generally yes...that is the asking price (the verbage is a bit confusing)....you could still get it for much lower than that.

**StoneGRMI** · 05-12-2008, 06:59 PM

Go to the local government assessment page and see what price the most recent bank note transfer was. That price is typically what's left on the mortgage so it should give you a good idea of what to offer. If you don't have access to that, get an agent to do it for you.

**spywizard** · 05-12-2008, 07:04 PM

unless you get it from the bank on a short sell..

and that is the way to go.. better to wait until Sept of this year to buy, the market current still has about 50/50 realtors trying to get prices for homes from 2 years ago.. after sept, the people with families will have already moved and the demand will go away, meaning people will start to be desperate to sell before winter..

and a house is only worth what someone is willing to pay for it..

good luck..

**FallenWyvern** · 05-12-2008, 07:29 PM

Corporate owned is the way to go. Short sale pain in the ass imho especially when there are so many corp owned ones.

**StoneGRMI** · 05-12-2008, 07:33 PM

Originally Posted by FallenWyvern

Corporate owned is the way to go. Short sale pain in the ass imho especially when there are so many corp owned ones.

Agreed. Takes FOREVER.

**spywizard** · 05-12-2008, 07:35 PM

I'd agree with both of you.. In Minnesota, they are doing it now within 60 days.. it's a trend..

**StoneGRMI** · 05-12-2008, 07:42 PM

In Michigan I have waited 60 days for a reply on a freakin counter offer. It's getting better lately but I steer clear of short sales unless I must deal with it.

**spywizard** · 05-12-2008, 07:49 PM

It's getting so bad here that the cities are already projecting and adjusting tax values downward 12%.. and that's in the good neighborhoods..

the only area it isn't happening is around the established lakes..

**firmechicano831** · 05-12-2008, 10:09 PM

yup get bank owned. I just talked to the countrywide department that handles shortsales on friday. They said its taking about 1 month just to get a negotiator assigned on a file. She also mentioned there having problems closing the ones already accepted on the shortsales.

**J431S** · 05-12-2008, 10:24 PM

another thing u should consider before u dive into these mortgage investment is to watch out what rate comes with that foreclosed package....if it is ARMs I wouldn't go for it unless if your goal is to short sale.

**Kingweb50** · 05-12-2008, 10:34 PM

No I was going to buy one to live in not to flip. So the price that is lower seems to me to be what is owed on the existing loan on the house? Do they just want to sell it for that price or are they trying to get closer to the market value price for the house?

**firmechicano831** · 05-12-2008, 10:38 PM

If you could afford it get a 30 year fixed note.

**J431S** · 05-12-2008, 11:24 PM

Originally Posted by firmechicano831

If you could afford it get a 30 year fixed note.

i agree but what if the value of the property begin to decline say after 7, yrs, or 10 yrs, or 13 yrs? how would u bail out from that 30 yr fixed rate payment?

**BWhitaker** · 05-13-2008, 02:01 AM

1) A big concern with buying forclosed homes is that they are usually quitclaim deeds which contain no warranties such as seisin, quiet enjoyment, conveyance, general, etc.

2) Many people in California have been bailing on their mortgages since they default, lose their home (but it doesnt have any equity in it anyway) and then just take that loss as many states have anti deficiency statutes which dont allow for repossession of personal property.

**39+1** · 05-13-2008, 12:36 PM

Originally Posted by BWhitaker

1) A big concern with buying forclosed homes is that they are usually quitclaim deeds which contain no warranties such as seisin, quiet enjoyment, conveyance, general, etc.

2) Many people in California have been bailing on their mortgages since they default, lose their home (but it doesnt have any equity in it anyway) and then just take that loss as many states have anti deficiency statutes which dont allow for repossession of personal property.

I dint know that thank you.
I was dicked on taxes on a house i bought from the sherif had to baCK PAY THE TAXES ON it. Dont know how that happened and every time it is explained to me it dont make sense