Home Buying in 60504>Question Details

Lenell Black, Home Buyer in Aurora, IL

hi iam intersted in buying an home about may of this year i was woundering is it an good thing or bad thing to purches an forclosure home?

Asked by Lenell Black, Aurora, IL Thu Jan 3, 2013

Help the community by answering this question:


There are a lot of variables involved in buying any home but a foreclosure can pose special considerations. Are you willing to buy a home that needs repairs? If so, you would need to get pre-approved for a 203K Loan that would handle the repairs - but they need to be done by professional contractors so any savings you thought to make by doing the work yourself would not be possible. If you have cash then you can do the repairs yourself if you have the skills.

There are some foreclosures in great neighborhoods that don't need as much work - just cosmetic - paint and flooring perhaps but they may not be as much of a bargain because if its in decent shape in a good location you might be involved in multiple offers and if you really want it may have to bid higher than you want.

As you can see there are a lot of variables involved so you need to find someone that has the experience in advising you regarding this niche. Along with a good mortgage officer you can reach your goals but you need to be very clear on what you want to accomplish.

Feel free to contact me if you need assistance. Good Luck on your search!
2 votes Thank Flag Link Thu Jan 3, 2013
Foreclosures offer the best prices - usually - on the market. However, you do need to be ready to do your homework about the property and make sure you are ok with some repairs, updates, etc. Also, buyer's market does not usually exist when doing a foreclosure. Banks are in control - their rules - but often they are a great way to buy a home.
1 vote Thank Flag Link Thu Jan 3, 2013
Buying a home is a major decision and you should consult with a professional Realtor to discuss the pros and cons and what the requirements would be. If you are interested in the Aurora area, I live and work in that area and service the surrounding cities. You may contact me at 630-802-5825 or email me at MikeCluck@remax.net and I would be happy to visit with you about home buying and the benefits. Interest rates are at all time lows so if you are planning to buy, now is a great time.
Thank you, Mike
1 vote Thank Flag Link Thu Jan 3, 2013
Lenell it depends on what your short and long term goals are. Are you purchasing as a rental investment? Are you purchasing as a primary residence? There are pros and cons to any purchase, you have to weigh the options and see if they match your purchase objectives. I would think about what you really want to do with the property and consult with a mortgage specialist and an expert realtor in your area.
1 vote Thank Flag Link Thu Jan 3, 2013
Hi Lenell,
Buying a foreclosure home can help you to get a fantastic deal on a home. Some foreclosure homes offer a great value and some others may be priced low but need a lot of work. If you have not looked into foreclosures before contact a local agent who has experience in this area and can help you find that perfect home. You will need to get pre-approved for your loan and provide proof of that with any offer you may make. This is a good first step if you have not already done that.

All the best,
Gary Geer
1 vote Thank Flag Link Thu Jan 3, 2013
Purchasing a foreclosure is a great thing if you ask me. You can get a great home at a great deal! Give me a call if you need to get prequalified for the financing!

Sean Cochran
Quality Mortgage Lending
0 votes Thank Flag Link Mon Jan 14, 2013
Greetings Lenell,

Whether it's a foreclosure or a regular sale, you need to be sure that you can afford the purchase price + rehab costs (if needed) + regular maintenance costs of owning a home.

Get yourself pre-approved first in order to see what you can and cannot afford.

Should you need any assistance, feel free to contact me.
Web Reference: http://www.BJDHOMES.com
0 votes Thank Flag Link Mon Jan 14, 2013
Foreclosures are different from a regular sale property....
Often they have not been very well taken care of, because of financial hardships, so you have to be
prepared that you have to repair, replace and upgrade .... So have an inspection and look a the property super carefully, some money spent beforehand will pay for itself if you find out about problems and then decide you do not want to buy the home anymore.

Not everything is in getting in cheap. just be careful.....

The other side is that sometimes it takes longer as the process goes through the bank it may take
much longer than you expect and the bank will decide which offer they like best...

So sometimes and it all depends on what you are looking for and what your price range is, it is
better to buy for a little more an updated and well maintained home, on the other hand if you are
handy or a contractor etc then a home with good bones, less expensive may be your choice...

All I am saying here check it out carefully, get enough expert advice on what could potentially be
wrong with the home. If you need a recommendation for a local Realtor, let me know and I gladly
send a recommendation your way.

Sincerely yours,
Edith YourRealtor4Life & Chicago and Northern Illinois Expert
Working always in the very BEST interest of her clients, Buyers, Sellers and Investors alike....
And always with a SMILE 
Covering for @Properties the city of Chicago, all N and NW suburbs, the fine homes on the
North Shore, and many of the W and SW suburbs, and with her trusted Partner Agents all of
the US and worldwide properties. Edith speaks French, German, some Spanish and other.....
@Properties ---- EdithSellsHomes@gmail.com
Check out my website at htttp://tinyurl.com/YourRealtor4Life
0 votes Thank Flag Link Thu Jan 3, 2013
Foreclosure properties are just one option out there for you - it's more about what location and housing requirements (bedrooms, bath, ammenities) you have. Its important to figure out those first - then work with a Realtor who knows tha area well.
As a lender, I strongly encourage to get pre-approved for the mortgage first. There's nothing worse than seeing a house you love and not being able to finance it. At Castle Bank, we offer a wide variety of loan products, including down payment assistance for first time buyers who qualify. Please reach out to me at 630-877-4663 or kmorris@castlebank.com if you'd like to talk more.
I'd love to help guide you through the financing peice and connect you with a strong Realtor!
0 votes Thank Flag Link Thu Jan 3, 2013
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