Home Buying in Greenville>Question Details

Homebuyer, Home Buyer in Greenville, OH

Looking to buy a home that was foreclosed, and auctioned with no sale but still is not on mls.

Asked by Homebuyer, Greenville, OH Sat Jul 23, 2011

The house has been vandalized with major electrical problems and holes in walls in every room from where they tore out the electrical and some rooms in the ceilings. How much of a difference in price compared to appraisal should I expect to get with this kind of damage?

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Wait for the bank to finally put it up for conventional sale, they tried auction and saw that the price they want could not be hit, so this house may stay in their inventory until better home prices for the area appear! Hunting down the property which right now is not listed will only irritate the bank officer involved with inventory control.
0 votes Thank Flag Link Mon Jul 25, 2011
Approximately half
Sheila Spahr
Prudential One Realtors
e-mail: sspahr@onehomefinder.com
0 votes Thank Flag Link Mon Jul 25, 2011
I don't know if you have trustee sales or foreclosures in Ohio so the timeframe for completing everything necessary to bring it to market can vary greatly. The appraisal should take into account the property condition and set value accordingly.

Though Ron is correct that a standard FHA loan would be impossible based upon the conditions you describe, there is a very nice option available other than all cash. FHA offers a 203k program that is intended for just these circumstances. In a nutshell, the loan will provide the purchase money as well as additional funds to be used to make necessary repairs after close. The property would have to appraise at the purchase price as well as at the higher value after the financed improvements.

The easiest version of this loan is the expedited one which caps at $35,000 minus required set asides. If more is needed you could go for the full version but that will require quite a bit more work and expense on your part.
0 votes Thank Flag Link Sat Jul 23, 2011
First things first:

It often takes weeks, 4-6, between Trustee Sale and Listing on MLS.

Secondly, Vandalizing and dead lawns are tell-tale signs of am REO. The problem with them, is that FHA (for example) will not finance a house that has Health and Safety issues. Often, this regegates the house to CASH BUYERS. Recently, some new Fixer Loans are available for non-cash buyers. Talk to your Lender.

For the Damage, I would go through with a yellow pad and make my own list, or you could take a contractor and your Inspector with you.

Good luck and may God bless
0 votes Thank Flag Link Sat Jul 23, 2011
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