Foreclosure in 19020>Question Details

Megan Malone, Home Buyer in 19020

Can any agent help me to buy a foreclosure, or are there special agents for that? Re: Realty Trac Foreclosure properties listings for hundreds of $$$

Asked by Megan Malone, 19020 Sat Feb 20, 2010

OK, I am single mom with one child, a middle class income, and credit card debt that I am trying to fix and get rid of now. I am looking to move back to Bensalem and I would really like to buy a little land or a small single family home with a little yard. Obviously, I know for what I can afforrd the house size will probably be small & thats ok as long as I can add to it later. So my questions are:
1. Can I really buy a foreclosure really cheap?
2. Can I still get FHA lending for a foreclosure or short sale?
3. IF I could do all this by April-June would buying a foreclosure or short sale interfere with the Home-buyer tax credit?
4. Are there any other housing trans actions that are excluded from the home-buyer tax credit?




THanks
Megan

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Answers

7
The clock is ticking...you mention credit card debit that you are trying to fix. Make this your number one priority. It will make obtaining financing significantly easier. You have until April 30 to be in contract, June 30 to close the transaction. While the foreclosure banks want a quick sale, the mortgages companies, particularly FHA insured mortgages, are not geared to that end. Consumers typically believe they can pick up a foreclosure "really cheap" but often fail to fully understand how costly it can be in the end. That is not to say there are not some foreclosures in relatively good condition; however, they will not be "really cheap." Make an appointment with a mortgage loan originator. Come prepared with bank statements, W-2's, tax returns. Have him tell you exactly what your financial options are then focus on homes in that price range, foreclosure or not. He will also be able to help you address your credit issues.

Good luck!
1 vote Thank Flag Link Sat Feb 20, 2010
Any agent or realtor can help you to find foreclosures that re on the market. Ignore realtytrack listings. You can not buy a house for what they are giving as sales prices.
0 votes Thank Flag Link Sat Mar 6, 2010
Megan
There is a lot of good advise, another avenue to look at is FHA 203K streamline. If you find a house that needs up $35,000 in repairs and upgrades with the 203K streamline the mortgage company adds the price of repairs to your mortgage. At settlement you get half the money to pay the contractors and when the work is completed the bank releases the other half.
This is a way to buy the AS IS homes with FHA.

Cinnamon Boffa
ReMax Realty Services
215-245-2121
zcinn@verizon.net
0 votes Thank Flag Link Sat Mar 6, 2010
Others have already pointed out that you do not have much time if you want to take advantage of the tax credit.
For details about the tax credit go to http://www.irs.gov .
You may not have enough time to buy and build.
You mention trying to fix credit card debt. Do you mean your credit is not good ? The first thing is to talk to a lender. You can look up hud approved lenders on http://www.hud.gov and also talk to credit counselors mentioned.
If you pay off your cards will you have money for down payment.?
A good lender is the best person to advice you.
Once you know where you stand, you should hire a good buyers agent to help in your search.
Short sales do take time for approval and depends on the lender. Your agent can guide you.
Foreclosures are not always the best buys. If adding on to the house is important, discuss with the agent because there are guidelines for adding on. You can not buy a condo if you want to add on.

There are some wonderful buys in Bensalem. There are homes in all price ranges. So please talk to a lender first.
Web Reference: http://www.gitabantwal.com
0 votes Thank Flag Link Sun Feb 21, 2010
Hi Megan,
Fran had an excellent response below. I just wanted to add that FHA has changed its fees and requirements, so your absolutely best bet right now would be to speak with a mortgage lender first. With mortgage rules changing daily, we really need to rely on mortgage lenders to know what they are talking about in order to give us reliable info. If you need some recommendations of good guys, shoot me an email. I know several who specialize in FHA lending.

Also, make sure that your agent has some experience with "as-is" and TLC homes. Someone who can give you realistic ideas of costs to renovate, what are "big deals" and what are cosmetics, etc.

I like your spunk ;) Girls can do rehabs too! (I do fix and flips investments, and LOVE a good junker house that I can make pretty. If you want to pick my brain, shoot me an email or give me a call).

Here's a blog I wrote a while ago on the problems in financing a TLC property. Most that I've been seeing will not qualify for FHA financing.
0 votes Thank Flag Link Sat Feb 20, 2010
I am an Agent from Realty Trac. I just found an investor a wonderful foreclosure in Newtown Township. Please call me for a consultation.

Sherry L. Poley
Re/Max Advantage
820 Township Line Road
Yardley, PA
BestBucksCountyRealEstate.com
Direct (215) 230-7152
Office (215) 369-3800
0 votes Thank Flag Link Sat Feb 20, 2010
Megan

There are currently 7 homes in Bensalem for sale under $150,000. Five are bank owned and two are individualy owned. So properties are available. The problem is getting approved for financing and getting approved for a specific property. All of these are being sold "AS IS" with the buyer responsible for the Use and Occupancy certificate.
So to answer you questions.
1. You can get a deal on a foreclosed home. Do no however confuse a foreclosed home with a home in foreclosure.
2 FHA will finance a foreclosed home however the homes condition may make it problematic. Look for a home that qualifies for Home Path financing.
3. If you are under contract by April 30 and close by or before June 30th and otherwise qualify for a home buyer credit, then you qualify. The fact that you buy a bank owned property does not prohibit you from taking the credit.
4. No the type of house does not matter for the tax credit. You must qualify and the property must be used as your primary residence.

Keep in mind that Foreclosure web sites often liist information from the public record of properties that may be in financial distress. This does not mean that they are for sale or available at the prices indicated. Furthermore many sites ask you to pay for a "list" of available properties. We advise caution when something seems to be to good to be true or when anyone is asking you to pay up front.
If you want any other information do not hesitate to contact us.

Fran and Mark Redding
Prudential Fox Roach
1010 Stony Hill Road
215-504-7500
215-321-3307 DIRECT
http://www.FranandMark.com
Web Reference: http://www.franandmark.com
0 votes Thank Flag Link Sat Feb 20, 2010
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