Home Buying in 06095>Question Details

Magpyetwo, Home Buyer in 06095

Hello. I'm a first time homebuyer, and with the market the way it is I think my money may stretch more with a

Asked by Magpyetwo, 06095 Fri Jun 5, 2009

Hello. I'm a first time homebuyer, and with the market the way it is I think my money may stretch more with a forclosure than a more traditional sale. However when I ask my current realtor, he say's they're not as great a deal as they seem and tends to change the subject. I do realize that purchasing is not likely to be as easy or simple a process with a forclosure but I would like to at least have more information before crossing all forclosures off my list. Where can I find some objective information about the pros and cons of purchasing a forclosure and information about the process?

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Magpyetwo,

You've now received a wide variety of opinions and most of them good. I think your agent may be uncomfortable with your request, however, without knowing the whole situation, it is hard to say.

I do not agree with the comment on foreclosure "as is". It states that, but in many cases, they will work with you on certain issues. Your agent should include these in your search and should be able to negotiate on your behalf to get it done if there are issues.

In defense of your agent, I can say that many buyers think that they have bargaining power to the point where they call the shots and low ball on the price and that is simply not the case. In most instances, the mortgage holder has exhausted all other efforts to sell the home and is listed as low as they want to go. That said, you are still able to negotiate price, repairs etc.

Linda
Web Reference: http://www.lindacefalu.com
0 votes Thank Flag Link Mon Aug 16, 2010
I think you need to insist that your realtors widen your search for homes in your area. And, make certain that foreclosures are included in the search. Some banks have been doing repairs on their properties to make them more marketable. So, they're worth taking a look at.

Best of luck to you.
Web Reference: http://www.DesariJabbar.com
0 votes Thank Flag Link Mon Aug 16, 2010
Sorry, you need to have this conversation with your Realtor. He or she, is your trusted advisor. They are working for you:)
0 votes Thank Flag Link Mon Aug 16, 2010
You do not always get what you think you will get with a foreclosure. What about a FSBO? That you can buy with or without an agent. Email me at budrusty@aol.com and we can talk more
0 votes Thank Flag Link Wed Jun 10, 2009
Ask your Realtor to show you not only foreclosures but also short sales and regular properties. Do keep in mind however, that some foreclosures do need a lot of work and are not necessarily a bargain, you do buy a foreclosure "as is". The important thing is to know your budget and sticking with it.

Anna
0 votes Thank Flag Link Fri Jun 5, 2009
Hi Magpyetwo,
It sounds like maybe your agent isn't willing to leave his comfort zone. Some agents are still unwilling to take part in short sales/bank owned sales because it is a much different process then dealing with the typical sale many of us have grown used to. I agree with you that you need to consider all types of property to see where your dollar can take you. But definetely don't rule out nondistressed homes just because they aren't getting as much attention. There are many good points made below, especially regarding your type of financing. Also consider that many foreclosed homes are going to require a considerable amount of money out of pocket after you close. Appliances, repairs, carpet, paint, etc. As a first timer, sometimes this is a little intimidating. Hopefully you can take advantage of the tax credit and put it to good use, that may help. If I were you, I would approach the subject honestly with your agent. Let him know that you are interested and do not allow him to passify you. It's his job to represent you, and help you find the right home for you. It's not going to be his house! If he is unwilling to hear you out and help you with your research, maybe you need to have a conversation with his broker. (If you have signed a buyer/broker agreement with him) If not, maybe you should consider finding an agent that is willing to take your best interests to heart. As far as you doing more research about the pros and cons, I would have to say you are in the right place. Also, take a look at the Bolg section. There should be some good foreclosure reading and links there. Best of luck to you and happy hunting!
0 votes Thank Flag Link Fri Jun 5, 2009
The huge con is the work/sweat you will have to put into the property, since mainly they are fixer uppers, plus you are buying something "as is" The lender will not make any repairs. Pro is that sometimes you come across a nice property that is really low in price. Don't cross them off the list...just go into it cautious and you might come out lucky!

Ask your realtor to include them onto the list. I would advise you work with your realtor on them. The bank websites that Dunes put below me..sometimes what happens is that the property is not listed on there banks websites until days later after the home goes on the market. With a realtor, the second it hits the market, they will know.

Good luck!
0 votes Thank Flag Link Fri Jun 5, 2009
Magpyetwo, You can browse thru the Bank/Gov sites provided for the public.

These sites have information for the Bid/Purchase process each of them use and you can also look at the properties for sale
(REO/Foreclosures) listed to sell.

Sites like these .... http://hud1.towerauction.net/CT.htm ... http://www.countrywide.com/purchase/f_reo.asp ... http://www.pasreo.com/pasreo/public/propertySearch.do ... http://www.wamuproperties.com/

The links to these sites and much more may be found here ... http://www.mortgagenewsdaily.com/wiki/REO_Database_List.asp .... http://www.biggerpockets.com/bank-reo.html

Good luck, Dunes
0 votes Thank Flag Link Fri Jun 5, 2009
Buying a foreclosure is not a bad thing in and of itself. After all, it is still a house. The key is to understand the differences between buying from a homeowner, a homeowner in the process of being foreclosed on, a foreclosure auction, and a bank owned process. Each sale type has its own processes and potential pitfalls, as well as potential up-sides. You need an agent th is familiar with all of these and can advise you of the ramifications of each.
You need to evaluate each deal on its own merits. You also need to consider the present condition of the property you look at, and what issues you might have with a lender. Mortgages on properties that are not in livable condition are trickier.
You said you nave an agent. If you have signed a buyer/broker contract, then you are bound to that agent for the duration of the terms you agreed to. If you feel that your agent is not knowledgeable enough to provide the service you require, speak to his/her broker about another having another agent assigned to you, or releasing you from the contract.
I hope this helps, and good luck.
Web Reference: http://www.danrossre.com
0 votes Thank Flag Link Fri Jun 5, 2009
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