Home Buying in Jacksonville>Question Details

Michele, Home Buyer in Jacksonville, FL

Is buying a foreclosed home something I should consider? or is is something I should steer clear of. I posted yesterday about buying a home

Asked by Michele, Jacksonville, FL Tue Jul 31, 2012

for 70,000.00, but I was wondering if foreclosed homes should be something to be considered. I am totally clueless when it comes to foreclosures. So I figured this would be the best place to ask. Thank you in advance.

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Answers

9
Hi Michele,

Right now foreclosures are a great way to get a good return on your investment. In Florida you have many protections that keep you from buying something blind. You'd be surprised what you can find out during a pre-purchase inspection. If you make an offer on a foreclosure the most important thing to ensure is that you have an "inspection contingency." This will allow you to hire a professional to inspect your purchase top to bottom and let you know about all of the defects before you're locked into a purchase. There are other things to consider as well and I'd love to speak with you about them if you'd like some more free advice. Call or email me 7 days a week~

Jeff Metcalf, REALTOR(R)
Watson Realty Corp.
(904)495-0115
http://www.Realty2Reality.com
1 vote Thank Flag Link Fri Aug 3, 2012
Yes, you should consider foreclosures and seller owned properties. Be prepared for there to be multiple offers on homes you choose in this price range. This means that you will be competing with other buyers to purchase the property. I have been able to negotiate for the bank that owns the property to do lender required repairs (like WDO damage and installing new HVAC, etc.) up to $5800. Also, if you are a first time home buyer, there is down payment assistance (DPA) available in Jacksonville, FL. Pay special attention to the condition of the roofing because this is a high dollar item if you have to replace it in a couple of years. Make sure you get a home inspection. There is a first time home buyer class that you can attend that is very informative on what to look for when purchasing a home. The DPA programs require that you attend an 8 hr class. I can put you in contact with a loan officer if you email me at bkgravitt@gmail.com.
0 votes Thank Flag Link Thu Aug 2, 2012
Michelle,
You should look for the best value for your money. Often it is a foreclosure, but sometimes and owner who is ready to move.
You have a lot of good answers below. Now look for an agent you can connect with and go from there.
Good Luck!
Genevieve Ramachandran
0 votes Thank Flag Link Wed Aug 1, 2012
Yes, absolutely. Fannie Mae HomePath listings and Freddie Mac owned HomeSteps listings are now being fixed up to allow FHA mortgages.

On other bank-owned properties it may be possible to get an FHA 203k fixer upper mortgage to include repairs and put only 3.5% down. There is also the HomeStyle Mortgage that will allow you to include renovations with only 5% down. Contact Wells Fargo, they are very experienced with HomeStyle.

Also if you're considering "short Sales", you probably cannot close quick enough once the approval letter arrives to do a fixer upper mortgage so you can't consider fixer upper short sales.

If you're talking about having $70k cash in your hands and going to the courthouse foreclosure auction then you need to do a lot of homework to learn the ropes.

As far as code enforcement liens, etc., if you buy a bank-owned property these will all be cleared up before closing so no worries there. You will get a clear title free of liens and title insurance paid by the Seller.

Good luck!
All the best,
Alma Kee
http://www.SoldOnTampa.com
0 votes Thank Flag Link Wed Aug 1, 2012
Hi again Michele, :) Absolutely consider foreclosures especially in your price range. Like I responded yesterday,,,, send your email address my way and I'll send all available/active listings your way to view. Have a Great Day

John Breen
904 349 0082
johnbreen@bellsouth.net
0 votes Thank Flag Link Wed Aug 1, 2012
First congratulations, okay so you're looking to buy have you checked to see what the market value on this house is? You want to make sure you have some room I would hate to hear that you bought the house and the market value was $45,000.00. Have you gotten a lawyer even if your state doesn't require one I plead with you to get one, with a foreclosure you want to make sure that you have a lawyer that can read between the lines and to make sure there are no hidden liens that's when you get a title company to make sure you are buying this house free of all liens. this is so important imagine buying this house and later on getting a bill of $20,000 for something you over looked, believe me this does happen. Once everything is all cleared to go what have you decided to do with the house hvae you decided to move in or rent it out??? Make sure if you're looking to rent it out that the rent payments make you money not cost you to put out money from your pocket, if so then pass this would be a bad thing. You buy foreclosure to pay you not the other way around. I hope my answer was good. Wish you the best!!!! Jeannette Batsikas you can always email me if you have any other questions...
0 votes Thank Flag Link Tue Jul 31, 2012
Hi Michele,

We are foreclosure listing agents for Wells Fargo and I would say definitely consider a foreclosure.

The only problem with them is that some banks will do NO repairs, so you can't do an FHA loan. If you are a cash buyer and don't mind some sweat equity, then there are excellent deals out there.

Sometimes there are delays in closing due to title issues (just had a couple like that), but we have put many happy buyers in some beautiful homes in the last year.

Hope this is helpful!

Sharon Alters
Coldwell Banker Vanguard
904-673-2308
sharon@teamalters.com
Web Reference: http://teamalters.com
0 votes Thank Flag Link Tue Jul 31, 2012
Michele,
Yes you should consider a foreclosed home purchase. Most are a great value and lenders are willing to work with you. Beware if you are buying a home, condo, town home that has an association Banks are responsible for monthly assessments after they foreclose but you may be responsible for any that occurred prior to their foreclosure. Be sure to discuss this with an attorney and real estate agent prior to finalizing any offer.

All the best,

Gary Geer

http://www.ggeer.illinoisproperty.com
0 votes Thank Flag Link Tue Jul 31, 2012
As an architect I deal with code violations everyday. Unfortunately when you buy the property you buy the code violations too , however, most of the fines can be negotiated down if you can prove that you are acting swiftly in resolving the issues... Such as hiring an architect or contractor and submitting for permits.
Orlando Lamas R.A.
http://Www.FixMyCodeViolation.com
0 votes Thank Flag Link Tue Jul 31, 2012
Interesting answer....that has nothing to do with the question....hope that helped your SEO
Flag Tue Jul 31, 2012
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