Daniel,

Yes a forclosure is usually a great investment, but there are some questions you must ask yourself, many times these are overlooked.
1.) Is there a reason other than the owners financial problems that this house was forclosed on?
2.) Are there many homes in the area being forclosed on?
3.) What are my goals in this transaction?
4.) Do I have the time to wait for the banks to close this deal.
If you have ready answers to these questions, then yes it would serve you well to purchase a forclosure. I have worked with many buyers that realize after the offer that one of the above questions wouldn't work for them.

Good Luck!

Hi Daniel,

First let me say thank you for whatever service you are doing in Iraq.

Yes, buying a foreclosed home is a great idea now. Let's face it this is not a normal market, it's a once in a lifetime market. Why? In a normal market foreclosure and fixer-upper are almost synonymous, not today. There has never been as big a supply of foreclosures in good condition as there is now. Yes, of course, there are some that have been trashed but the majority of the dozens I've been in during the past few months have all been virtually move in ready with only minor fixes.

This will not last. There is already evidence that bank owned prices are going up. Virtually every attractive property gets multiple offers with in days of listing.

If you want to take advantage of this market then get a realtor and get pre-approved for financing, now. Only the MLS offers real time updates, which is a must to be first in line. Without a pre-approval letter which specifies the property by address, your offer will not even be looked at.

If you're interested in Osceola County or southern Orange County, I'd be happy to help.

Good luck finding your home and thanks again for your service.

Regards,
Mark LeMenager
Weichert, Realtors - Hallmark Properties

Yes, they are. However it is best to look at all the options. While foreclosure represents a good 'deal' you must have a lot of patience as the process is long for Pre-foreclosures / short sales. The Bank owned properties are selling somewhat faster and we are beginning to see multiple offers which means the prices are being bidded up and leaving frustrations at times.
You must understand that Foreclosures / Bank-owned and Pre-foreclosures / Short Sales are often sold 'AS IS'. So you must be prepared to expect that many of the good deals will not always be in pristine condition and will need some repairs.

Having said that now is the best time to buy a home because you can get a lovely home at a great price and the interest rates are fantastic.
Good luck

Hi Daniel,

Most of the previous posts answer your question in great detail but there is one item I disagree with. Bank owned properties are usually listed as-is. However, you can always ask for repairs and seller concessions. More often than not I have saved my buyer money by asking for closing costs and repairs.

Recently I have noticed that bank owned properties are better presented than they used to be. It is usually only a coat of paint but it is an improvement.

If you have any questions feel free to contact me or go to my website at http://www.CallFredrik.com.

Daniel,
You should certainly look at all your options; foreclosures, bank-owned, and seller owned.

Yes.. some foreclosures are “good deals”, but it typically takes 6 to 8 weeks if that to hear a response back from the bank/lender on an offer. Plus many listing agents are submitting multiple offers to the banks. There are just no guarantees… but in some situations it is worth a try! You just would have to make your highest and best offer upfront. Than as others have said you may be faced with repairs, etc..

Now… with a bank-owned property you typically hear a response back within 48hours and are able to close quicker.

With some seller owned properties you are able to get just as good of a deal. It depends on the motivation of the seller! Plus the home condition will be better.

Please give me a call or e-mail. It would be a pleasure to assist you in finding your starter home. I can e-mail you some home listings today!


Rachael Wilson –Realtor
Coldwell Banker Residential Real Estate
400 Park Avenue South, Ste.210
Winter Park, FL 32789
Cell: 407-466-5964
Fax: 407-971-4552
SoldByRachael@cfl.rr.com

Daniel,
One point on Foreclosures. You may have to do a bit of work on the property but you can find super deals. Let us know what area you are interested in.
Rick.

If you don't mind putting in some sweat equity, a foreclosure can be a good idea. But bear in mind that foreclosures are vacant properties owned by financial institutions or the federal government. They are generally priced appropriately given their condition, and although the seller is certainly motivated, they have deep pockets and are not by any means desperate.

Virtually the whole country is on sale right now, and there are plenty of bargains available that don't involve foreclosures or short sales. If you buy a foreclosure or short sale, you generally have less ability to negotiate, the condition of the property will not be as good, and you will have more stress and difficulty in the purchase process, including getting your mortgage. Rather than focusing on foreclosures and potentially wasting a lot of time and energy, a better approach is to consult a mortgage specialist first. Figure out what type of property and price range is right for you, and get pre-approved if possible, so that you can shop with confidence.

Usually foreclosed homes are very attractively priced. There are many potential issues that come along with that "great deal"~ What is the condition of the home? On many occaisions, appliances have been boosted as well as plumbing fixtures and general destruction or deterioration. An inspection is highly recommended as is a competent market valuation. If it looks too good to be true- it probably is.

Daniel,
Great question, My first question would be what would be you budget,Also you need to know that foreclosure properties are usually in need of some repair. Yes you can get a good deal but you may have to spend money for items like appliances,flooring and paint.
Rick.

Daniel,

There are plenty of foreclosure opportunities in our Sarasota, Venice, Englewood area and it is a great time to purchase Florida property.

Over the past weekend we showed two brand new Lennar built homes. 3/2/2, 2400 sf, granite, storm shutters, tray ceilings, etc. etc. priced at $205,000. There are many other similar homes available. If you have any interest in finding more out about our area and what it has to offer, we would be happy to hear from you.

Best regards,

Susan & Bill Eckler, GRI
Michael Saunders & Company
billeckler@michaelsaunders.com
941-408-5363

Hi Daniel -- There are lots of homes on the market today in various stages of foreclosure. If you have a lot of time to wait for an answer on any offer you may make, short sale "pre-foreclosures" sometimes offer very good values. Homes that are already through the foreclosure process and owned by the bank (REOs) can give you an answer sooner.

In most cases, there will be repairs/replacements that will need to be made on a foreclosure/bank owned property. Since you would be purchasing the home in as-is condition, you need to consider whether you will have the funds available to do the work that will be necessary. In most cases, the bank will not make any repairs on the property. That also brings up the possibility that your mortgage lender won't want to lend money on the home if it is in need of major repair.

There are several pitfalls for any buyer, particularly an inexperienced buyer, in obtaining these types of properties. It is imperative that you be represented by an agent who has successfully closed foreclosure properties so that you can be advised of your rights and obligations under the contract.

I would suggest that you not limit yourself to only foreclosure-type properties. Many traditional sellers understand the competition in the market and are very willing to negotiate seriously with a qualified buyer--and with this type of seller, you have the ability to ask for repairs, closing cost assistance, etc.

Best of luck in your home search. It is a terrific time to be a buyer and you're wise to take advantage of it. To look for "bank owned/foreclosure" properties in Florida, just click on that link on my website.

Happy House Hunting!

Louise Warring
Coldwell Banker Residential Real Estate

Daniel, if you have never bought a home before, using a realtor to assist you in the process is really important. A realtor can guide you through the rather complicated process, and represent you. If you buy a home without that representation, you are purchasing from the listing agent or bank whose interest is to sell you the house. With a foreclosure, it is an "as is" sale, so you inherit whatever problems the home has, and frequently the owner, knowing it was going into foreclosure hasn't taken very good care of the home. The bank isn't going to spend a dime to maintain or improve the home. Make sure, also that you use a title company to close the deal, and have the title company do a title search to make sure you are not inheriting other title issues. A realtor can help you with all of these arrangements, and as the buyer, the realtor doesn't cost you a penny--the seller pays the real estate commission. If you shop carefully, you can probably get as good a deal not buying a foreclosure property (internet foreclosure property is usually bogus information) and making a smart offer on a home that has been on the market for a long time and the seller really needs to sell. Happy Hunting!!

Foreclosure homes can be a good deal, but they can also be full of problems so be sure that you use a Realtor to help you through the process. The seller will normally pay the commission anyway. Inspections are also important but even more so with a foreclosure home because very likely they have not been maintained for an extended period of time -- probably without utilities for a long period of time also. Even so, you will be buying the property "as is." Banks do not make repairs.

Also be certain that you buy title insurance.

Other properties being sold by owners who have been in the home for a longer time owe less on their home, so they can and are selling for prices quite competitive with foreclosure homes. Check all options with your Realtor.