Home Buying in 77064>Question Details

cpreston1707, Home Buyer in Houston, TX

I'm curious about buying a bank owned foreclosure. Do you really save money or are there other fees involved. How much longer is the process?

Asked by cpreston1707, Houston, TX Wed Sep 25, 2013

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You can save money, but the process of buying just one foreclosure can be time consuming and frustrating. Most individuals who are just looking for a house to live in quickly abandon the foreclosure route because the timeline from bid to purchase can be a wide open variable.

You're better off purchasing from a property wholesaler. Property wholesalers buy all kinds of distressed houses, including foreclosures, then trash them out, clean them up and get them ready for investors and home buyers.

The buyer benefits by not having to deal with garbage, rodents and squatters. The wholesaler makes money on volume. Buying a foreclosure could save you 10s of thousands over a retail home, but buying from a wholesaler will still save you just a little less.

Our company deals in wholesale investment properties in Tampa. Take a look - http://www.btgh.com/tampa-florida-investment-properties/ . This should give you a good idea of the difference between foreclosure, wholesale and retail prices in the Houston area.
0 votes Thank Flag Link Thu Aug 14, 2014
I'd love to help you. Feel free to contact me through my Trulia profile.
0 votes Thank Flag Link Thu Aug 14, 2014
You generally will find the better bargains on home needing significant repairs. Rehab loans are available to finance in the cost of repairs, but you do have to use a contractor to make the repairs when you use these types of loans. You can find more information on purchasing foreclosures on my website.
0 votes Thank Flag Link Mon Sep 30, 2013
Great question! There are no other fees involved and getting a "great deal" is partially a myth. I was a dedicated foreclosure agent for the past 7 years and I know how to negotiate with the banks. Buying a Fannie Mae foreclosure, you can get a good house and save some money but the banks price their properties at market value. You have the opportunity to do home inspections in a "free look" period. I am your foreclosure expert, call me if you want to find a foreclosure to buy.
0 votes Thank Flag Link Mon Sep 30, 2013
Debbie ...
Are you licensed in Texas? This question was directed toward the Houston area. Foreclosures may be a viable option in Georgia, but they're no bargain here.
Flag Mon Sep 30, 2013
Really depends on the market area and the bank that owns it. Some banks are very good at listing their homes near market value and then lowering the price if needed.

If you are looking to build quick equity, I find structurally sound but dated homes with modest deferred maintenance in an area that is revitalizing are the best buy for building quick equity.

Bear Creek to Spring Branch to the Houston Heights depending on your budget. There are many other pockets with upside potential.
Web Reference: http://www.DaveRealty.com
0 votes Thank Flag Link Mon Sep 30, 2013
If you need more information , please call me

Maria Garcia / Juan Ascanio
832-896-0146
0 votes Thank Flag Link Fri Sep 27, 2013
Yes you do, as long as you do your do diligence and Inspect the property tru a professional; It will some time require repairs, but there is were you need a professional advice.
0 votes Thank Flag Link Fri Sep 27, 2013
Their should not be an extra fee on a Homepath or HUDhome foreclosure. The time frame is the same depending on how familiar your agent is with the bidding process.
Some banks have their homes sold directly by the listing agent, so the normal offer process goes into effect in that event.

The money you should be worried about spending is for repairs and any unforeseen problems.
Have your Realtor run a CMA report, visit the home with a person knowledgeable about repairs, that way you can make a realistic offer.

Foreclosures do not require that they present you a Seller's Disclosure list, nor will they provide you with a survey. If you are doing a loan, your lender will require a survey that will run 300-500 depending on the type of property.

Last, always get a good inspector, and be advised that you may be responsible for turning on all of the utilities in order to get inspections done.
0 votes Thank Flag Link Wed Sep 25, 2013
Infomercials aside, it’s a myth that anyone can just pick up a foreclosure for pennies on the dollar. While they may be aggressively priced at first, the strategy is to raise the stakes through a “bidding war.” Most end up selling for more than the asking price and close to actual value. Nobody’s giving away houses these days.

Just about all of these places need work beyond cosmetic updates. Simply put, they’re best suited for investors with deep pockets. I work with several, and see what it takes to bring such homes to livable condition … it ain’t cheap.

The terms should suffice to drive all but seasoned buyers away … “as-is, where-is, with all faults.” Bottom line: it’s yours as it sits … although most contracts include an opportunity to inspect the property and void the transaction. These homes are usually in rough shape, so it’s imperative to have them checked thoroughly … roof to slab. The cost is on the buyer and not reimbursable, even if the sale doesn’t close. The lienholder/seller will make no allowance for repairs … “as-is, where-is” sums it up.

Ironically, you can likely purchase a great home in better condition for about the same money … possibly less, given what it would cost to get most foreclosures into shape. It will be my pleasure to work with you toward finding that special place which best suits your family’s needs. There is no cost to you as a buyer. If I may be of assistance, please feel free to contact me. I look forward to hearing from you.

Regards …

Al Geffon
Trend Setter Realty
(713) 213-6350
al@geffon.net
Web Reference: http://www.har.com/algeffon
0 votes Thank Flag Link Wed Sep 25, 2013
If you are in a hurry anticipate lender to reply quickly it can be months. Foreclosed properties can be distressed due to the following reasons:

1. Prior owner did not have enough money maintain the property
2. Bank did not address maintenance issues - based on how long property been on the market
3. Good Realtor can trouble shoot many of these issues with wasting your money on inspection and appraisal , etc.

HOWEVER I have seen foreclosed properties owner/ lender took great care of the property ! Never know each property stands alone based on condition SAME as a typical home purchased .

MYTH of savings - perhaps in other parts of the country however Texas has been healthy market for home sales you don't see foreclosures as often vs. prior years.

_________________________________________
Lynn911 Dallas Realtor & Consultant
Multimillion Dollar Sales Producer
972-699-9111
http://www.lynn911.com 100's of Dallas homes listed for sale or lease

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0 votes Thank Flag Link Wed Sep 25, 2013
The process isn't any longer buying a foreclosure than buying from a traditional Seller. I spent 8 years as a foreclosure specialist. However, short sales can take quite a bit longer. There are no other fees involved and the banks are very often willing to contribute to your closing costs AND to negotiate the price. You have to buy the property "as is" with a time period for a home inspection. Most banks don't do any repairs to the property.
0 votes Thank Flag Link Wed Sep 25, 2013
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