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Venjon_2000, Home Buyer in Chicago, IL

Buying a foreclosure in WA and remodeling costs

Asked by Venjon_2000, Chicago, IL Sun Jun 15, 2014

What is the process of buying a foreclosure in WA? I am looking at a foreclosure in Kirkland that seems undervalued. The question is, can I remodel 2 small bathrooms, smaller kitchen, living room ( mostly flooring and painting), and 2 bedrooms ( mostly flooring and painting) some unforeseen repairs with 50K? Also, can I use a real estate agent to buy a foreclosure and who is responsible for the commission?

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2
Kary L. Krismer’s answer
To go a bit further into the pre-foreclosure, actual foreclosure auction situation, you also need to make sure that you're buying the house free and clear of all liens. If it is a second position deed of trust foreclosing, you would still need to deal with the first position creditor, and it's very likely they have a due on sale clause (although they might not enforce that clause if you bring the debt current). And in any case, any delinquent real property taxes and the "sewer capacity charge" (if any) will need to be brought current. Finally, in the case of an actual foreclosure sale, your inspection rights will be nil, and even if it's a bank owned REO listing, your inspection rights may be a bit more limited that of a normal sale.
0 votes Thank Flag Link Mon Jun 16, 2014
I worded that response poorly. It should read you should determine the priority of the lien being foreclosed and understand which liens you are buying subject to. You do not necessarily need to buy free and clear of all liens, but you do need to understand which liens will survive.
Flag Mon Jun 16, 2014
Venjon,
Thanks for asking. To answer I have a few questions that need to be cleared up. Is this a listed property or one heading to auction. If it's a listed property the bank will pay the commission and your agent will work on your behalf. If this is a pre-foreclosure or a Realtytrac listing, chances are its fiction.
Realtytrac sells subscriptions to information a great broker can provide you for free. The prices they post have no bearing on what the home will sell for if it does go to auction.
Kirkland is a very hot market, so I'd be surprised to see anything there under market, even if it needs fix ups. I've worked with several investors and know Kirkland well. Depending on the work necessary, I could probably make $50k go a long way toward the items you're discussing.
Feel free to contact me through my profile and I can look up the property for you and give you more information if you like. No cost or obligation, and I won't buy it out from under you.
0 votes Thank Flag Link Mon Jun 16, 2014
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