It's not a good idea to assume that foreclosures are the best value. I'm writing blog posts about homes that come up for sale in my area and quite a bit I see homes listed as short sales for $350k and no deal is reached. The bank then takes the home back and lists it at $425k. Now does that make any sense? It didn't sell at $350k so why would it sell at $425k now that it's a full-blown bank-owned home?
This bizarre behavior by the banks is why you should look at everything your price range...whether it's a foreclosure or not. Foreclosures are not a guarantee of value.
It depends where you are looking to buy? If you are looking in Foster City, the chances of finding a foreclosure is next to nothing today. I have been an REO and a Short Sale agent since 2008 and since 2012 I have seen my business of REO and short sales going down very drastically. There will be some foreclosures that will be popping out from time to time but I can tell you that you will not be able to find them in your price range and they will be gone in a split of a second.
I do not think that you should abandon the idea of buying but I think you should change your strategy in your financing or area or even type of properties that you are looking for. The idea is to buy something wait a couple of years, so you can build some equity than sell with profit. Take that profit, added to your original down payment and maybe in 2 years your income might increase, you will than be able to buy a bigger property in Foster City.
If you need help with all that process, give me a call so we can talk in detail about your situation and figure out what would be the best approach for you.
Zoey Tolu Relator, DRE#01063373 Cell (650) 619-3379 or firstname.lastname@example.org
I've been helping First Time Buyers for 23 years as a mortgage professional and I will tell you what I have always told my clients here in New York: If you are a First Time Buyer, steer clear of foreclosures and short sales.
Foreclosures are someone else's headache. The home probably has not been well-maintained and you're a First Time Buyer adjusting to paying a mortgage. Do you really want to walk in the door to someone else's deferred maintenance that YOU will have to pay for? Also, if you're thinking there are deals to be had in terms of lower prices, mostly those "deals" go to professional investors who can pay cash, negotiate hard with a Lender, and close fast.
There are plenty of motivated Sellers with their homes listed on your local MLS. Go find a good Local Mortgage Banker, get prequalified, then find a great, experienced Realtor, and buy the home you want at the price you're willing to pay.
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I'm an EBA and I wrote a book called "Buying a Home: Don't Let Them Make a Monkey Out of You". It will be the best $6 you've ever spent. Follow the link below.
Best of luck!
Realtor (RE/MAX ACTIVE REALTY)
Short Sale and Foreclossure Resource
510 676 4770 (CELL)