Are foreclosure a great?

Asked by Kaye Thomas, Manhattan Beach, CA Fri May 18, 2007

We are hearing so much in the media about foreclosures.. are they really a good deal for most buyers?

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8
Maureen Fran…, Agent, Birmingham, MI
Sat May 19, 2007
BEST ANSWER
Actually, Vicky's answer is not correct for Michigan. Yes, the property is purchased "as is" but that does not mean a buyer cannot have an inspection. It means that the seller will not remedy any inspection issues and offers no warranty on condition. The buyer is also not responsible for liens in Michigan. The title company will issue a policy. The redemption period in Michigan is 6 months. A property bought from the bank after the redemption period will be transferred with ease to a new purchaser without any fear of the previous owner coming back. Obviously each state is different, but you asked about Michigan.
2 votes
Maureen Fran…, Agent, Birmingham, MI
Fri May 18, 2007
Though many people have the perception that foreclosures are a great deal, that can be far from the case. Often there are more motivated sellers than banks. The article below is about the real secret of buying foreclosures.
3 votes
Missy Caulk, Agent, Saline, MI
Fri Jul 13, 2007
In Michigan yes you can have and should have inspections. I have sold a number of foreclosures this year. It depends on the bank, one bank fixed a basement wall that was leaning in without any problems. Even if they are posted "as is", I have had them do repairs.
It also takes a while to hear back from some banks ( the larger ones). They are so overwhelmed with the market here.
However, if you are willing to wait and find a good house then it can be a great opportunity.
2 votes
Kristal Kraft, Agent, Greenwood Village, CO
Fri May 25, 2007
Foreclosures can be a good deal, but like any other real estate transaction, they need to be evaluated for price, location and condition. Typically they are sold "as is" which is not a condition every buyer can afford to fix if need be!
2 votes
Lola Audu, , Grand Rapids, MI
Wed Jun 13, 2007
There are a number of factors to consider when purchasing a foreclosed property. If you have an urgent time frame, you may find that you have to wait longer than normal to get the transaction processed. In addition, most foreclosed homes will be sold "as is", so it is important that you have a very detailed inspection. In the West Michigan area, there is a lot of inventory, so it is wise to check around. We have often found that today's buyer's market makes purchasing a foreclosed home just one of the many possible options to explore in obtaining a great deal on your next home!
1 vote
Kimberly Hen…, , Citrus Heights, CA
Tue May 29, 2007
If you are an investor the foreclosures could be good pieces of property to aquire. For most First Time Home Buyers, these are not what you want to start your Homeownership experience with. Remeber the movie The Money Pit??? Each State may have different disclosure laws and you may not be informed of the home's issues until after the fact.
1 vote
Vicki Moore, Agent, San Carlos, CA
Sat May 19, 2007
No! The buyer cannot inspect the property prior to purchase. Any loans, tax liens, child support due, etc all go to the new owner. The title company will not provide title insurance, leaving the new owner open to new liens. And the previous owner has a year to get the property back.
1 vote
Jon Sterling, , Aspen, CO
Sat Jul 14, 2007
There is some great information in these answers. I have seen a few situations lately where the foreclosured properties have a loan balance that's MUCH higher than the market value. Be sure to check on that. Just because it's a foreclosure doesn't mean there is equity there.
0 votes
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