What other things should you consider? Clean title!!! Has the former owner paid the IRS taxes? You might get the house only to have the IRS take it away.

Are you able to inspect the house? Does it have terminal mold or termite damage? Was the renovations done to code or will and inspector make you redo everything?

Be very careful. Just because it is a foreclosure, doesn't mean it is a good deal.
Ruth

Sun Oct 21 2007, 16:27

Ruth is dead on. The short answer to your question is EVERYTHING.

You say foreclosed, but there are several stages to foreclosure and if you are buying a true foreclosure then you'll be at the courthouse steps with cash.

All the information you listed is marketing material. You haven't listed the home's true value, the chain of title issues, the real meat of the condition of the home, as in, has it had any water, fire or mold problems. Anyone ever file an insurance claim on it?

Too many questions to start.

Sun Oct 21 2007, 16:39

Are you working with a buyers agent? A buyers agent agent will help you with all the questions and information you need to obtain to know if this is in fact truly a good deal. Sounds like this is a a short sale if you think you have room to negotiate price. There are many things to consider than just the price. Home inspection, clear title, termite inspection, liens, material defects. You need to have all the information.

Sun Oct 21 2007, 16:58

Joshua:
If I'm dead on, why not give me a thumbs up?!
Ruth

Sun Oct 21 2007, 17:50

You need to get comps in the area.
Reasonable is whatever you want and can afford...and what will it appraise for? Consider the sf and what you are going to do with the house...live in it or rent? If rent, you will pay more taxes since you will not have any homestead exemption.

Sun Oct 21 2007, 18:12

Ann,

First and foremost you have got to make sure you get all inspections done. Foreclosures are normally sold as Is and without a seller's disclosure statement, which comes down to hiring a buyers agent so that they can put a due dilligence period in the contract and that way if something really wrong comes up you are able to walk away within that due diligence period. You must do all your inspection within the time specified and if you decide to terminate it has to be by that date specified.

As far as what to offer, it has to go by comps and location, and depending on what stage this is in and if it is a true foreclosure you may not be able to deal with them because they are already at rock bottom price.

Remember the old saying if it sounds too good to be true is usually is.

Be Careful, Do as much homework as you can.

GOOD LUCK!

Diane Menard

Sun Oct 21 2007, 18:39

OK Ruth, you earned your TU!

Ruth is right, you must make sure that all liens have been cleared. Is this now REO property or is it still in the foreclosure process?

Sun Oct 21 2007, 20:26

Other than all that's mentioned and similar, get a title company to do a title search on the house and make sure you can get title insurance on that. I do hear that some of the title companies will not not insure certain foreclosed homes.

Sylvia

Sun Oct 21 2007, 20:36

My experiece with forclosed homes has been that in some cases the owners are upset they lost thier house so they do somthing to the house itself to "get even". I have seen one take off a wall outlet put a hose to it and turn the water on just enough so that it didn't show right away and let the mold run ramped - it's the unforseen that you have to be careful of - a structural inspection might even be in order just to make sure you are getting a sound home on top of the home inspection. As far as a reasonable price to negotiate - you need a buyers agent to run a CMA for you. If you need a local one email me and I can refer you to one. daniellep@crossroadsrealtynj.com. Hopefully you found the deal of a lifetime and are getting a great property!!

Wed Nov 28 2007, 13:50