Home Buying in Plano>Question Details

Lavan, Home Buyer in Plano, TX

Is it okay to buy a foreclosure home?

Asked by Lavan, Plano, TX Sun Apr 22, 2012

Help the community by answering this question:


Dallas Texas’ answer
Yes it is HOWEVER it can be a difficult process so be prepared to submit several bids on homes NOT all banks may not even respond many foreclosures can take from 45 - 180 + to close

Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
0 votes Thank Flag Link Mon Apr 23, 2012
Great Question!. However, the question should be what is the difference of purchasing a foreclosed home versus a homeowner offered home. In the case of a homeowner offered home, you will receive a sellers disclosure that will detail any issues with the home, you will negotiate on fixing any of these items during the process of purchasing the home. Bank owned properties do not have sellers disclosures and in most cases the home is sold in the condition the home is in. In both cases you should have an inspector go through the home to let you know their opinion. On the homeowner home you will negotiate and on the bank owned home you will figure the cost you personally are willing to make on any of the reprairs and figure that into the price of the home. The bank owned home may be a great deal if there is already built in equity and the repairs are within the limits you are willing to pay.

You should use a realtor to help you make your decision on either type of home. They can give you a CMA or Comparative Market Analysis so you can assess the value of either home. It really boils down to understanding the differences and what you are willing to accept. Thank you for allowing the realtor community to answer your questions..
1 vote Thank Flag Link Mon Apr 23, 2012
I cannot advise either way, because it depends on your situation; however, I have much information to share with you that will assist you in making the decision that is best for your needs. Contact me today at 214-872-0400 so we can set up a free, no obligation appointment.

Providing Solutions Because...Your Move Matters!

Michael L. Brownstead, GRI, ABR
Keller Williams Realty
1002 Raintree Cir., Ste. 100
Allen, TX 75013
E-mail: MBrownstead@msn.com
Cell: 214-872-0400
0 votes Thank Flag Link Mon Feb 25, 2013
It depends on you.

Often foreclosures need some work....so are you willing to buy ugly and put some work in, so that you can get a discount?

Not all foreclosures are ugly, but if you want a discount, those are typical....the uglier the house normally the bigger the discount.

We normally suggest you look at all homes on the market in your price range that fit your needs. That includes regular sales, bank owned homes, and foreclosures.
0 votes Thank Flag Link Wed Feb 20, 2013
Bruce Lynn, Real Estate Pro in Coppell, TX
Hello Lavan,

If you buy a foreclosed home with clean title and no liens on it, no title exeptions, and below the market - it is more than ok, it is great!

Just watch out for bidding wars and other things I mentioned above that might come with
foreclosed property.

Hope this helps,

Irina Karan
Beachfront Realty, Inc.
0 votes Thank Flag Link Thu Apr 26, 2012
The bank is not required to give you a disclosure of the conditions in the home, but HUD does supply a property report, which is similar in nature, but it includes their estimate of the cost to repair. You can hire a home inspector to perform tests and inspect the property. The bank might not offer compensation for items to be repaired, although some do. But, you can borrow extra to fix it up under several loan programs. The foreclosure itself wipes out all junior liens placed on the property, which basically clears the title for you.

When you buy from an individual, the seller is required to make disclosure of the property conditions plus some other information. You can also inspect the property and negotiate with the seller, similar to the bank situation. After you proceed with the purchase, you have to negotiate possession, as opposed to getting immediate possession of a foreclosure. You truly should get title insurance or at least get an interpretation of a title search to protect you from possible future claims, as opposed to being assured that they're already cleared off.

The big attraction is always the price. Usually, foreclosures go at distressed prices. As long as you're aware of the circumstances and can deal with potential repairs, foreclosures can make a lot of sense.
0 votes Thank Flag Link Tue Apr 24, 2012
It depends on you.
Some people think they are great deals....some are.
Some people would never look at one...
Each person has their own idea.

Sometimes they take a little patience and sometimes need some work. If you are handy and have time, they can be great deals.

Best way to find out if they are for you is to take a look at a few and see if you like what you find.

I'd be happy to talk to you about it. We can help you with bank owned homes, foreclosures, REOs, and regular sales too.

Bruce Lynn
Keller Williams Realty
0 votes Thank Flag Link Mon Apr 23, 2012
Bruce Lynn, Real Estate Pro in Coppell, TX
Hello Lavan,

Bank owned homes for sale are diminishing as banks are encouraging short sales to prevent foreclosures. Foreclosed homes typically sold as is and banks may not make repairs. Some financing such as FHA and VA financing will require the home to meet an acceptable condition. The appraisers can call items to be repaired before the buyer's loan can be funded and the sale can be closed. Your real estate agent can advise you on which homes should qualify for your financing.

Carol Perdew
Prudential California Realty
(209) 239-7979
DRE 985176
0 votes Thank Flag Link Mon Apr 23, 2012
Yes, it's ok, sometimes you can get a good bargain. One thing that you need to keep in mind is that you'll need to do your own repair so you have to make sure the home is priced well so the additional repair is not going to make the home value higher than it should. There will be an auction conducted by my broker soon, let me know if you are interested.

Thank you!

Susie Kay, Realtor®
United Real Estate
III Lincoln Centre, 5430 LBJ Freeway #280
Dallas, TX 78240


Servicing your real estate need is my priority!
0 votes Thank Flag Link Mon Apr 23, 2012
yes, foreclosures are an excellent purchase, sometimes.. It does depend on your goals and skill in making repairs. Can you do the repairs yourself or do you need to hire a professional? What size and type of home do you need? There are many reasons to discuss your home purchase with a professional. An agent can discuss the pros and cons of the property. Give you guidance when needing the advice of a professional. I would like to discuss your goals with you. Please call 972 896-5986.
0 votes Thank Flag Link Mon Apr 23, 2012
Foreclosures can be an excellent choice for a home purchase, but you really have to do your due diligence since the sale is considered "As Is". The seller will typically not do any repairs and doesn't offer a seller's disclosure. Before you jump in make sure you have an experienced Realtor assisting you and make sure they have experience with foreclosures. As a buyer, a Realtor doesn't cost you anything, but can save you a lot of grief and money in the long run.

Sam Young
Coldwell Banker Jane Henry, Realtors
Accredited Buyers Representative
0 votes Thank Flag Link Mon Apr 23, 2012
Hi Lavon-

Some foreclosures have been really good buys for my clients without having to invest a lot of money for repairs. It really depends on what your personal requirements are and what your financial limitations will be for repairs.

There are not as many foreclosures on the market now and the ones that are in pretty good shape sell with multiple offers within a few days. It very important that you work with a real estate agent and get daily reports when new foreclosures hit the market.

I have access to data that gives me information on foreclosures before they hit the market so I can have my investors and my clients ready to view and make an offer on the first day.

If you would like help from an experienced agent I would love to work with you. Please email me or text me or call and we can talk about the home you are looking to buy.

Best regards,

Sherry Renfroe
Ebby Halliday Realtors
(214) 215-4145
0 votes Thank Flag Link Mon Apr 23, 2012
What do you mean by "okay"?
What are some of your concerns about purchasing a foreclosure home? For many of our previous clients, they have purchased a foreclosure, and have been very happy.
We've also had clients who didn't want to get a foreclosure, and eliminated them straight away.
0 votes Thank Flag Link Mon Apr 23, 2012
I mean whether its the right decision to buy foreclosures or not. And what are the problems we will face other than the repairs??
Flag Mon Apr 23, 2012
Search Advice
Ask our community a question
Email me when…

Learn more

Home > Texas > Collin County > Plano > Home Buying in Plano > Question
Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer