Need help with buying a forclosure home with foundation problems. First house is almost on market and need a loan.

Asked by Kelly, Outside U.S. Thu Aug 30, 2012

My husband and I own a home but are in the process of putting it on the market. We found our dream home but it's in foreclosure and has foundation issues. From what I've read, if we purchased the home the repairs need to be fixed before actual purchase. The cost of repairs could reach as much as $50,000 and that's not money we have in our pocket. We will equity in our home now but won't get that until we sell it. What is our best option for a loan to purchase our dream home and fix the repairs while we are trying to sell our first house?

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Mark Atteberry’s answer
Mark Atteber…, Agent, Louisville, KY
Sat Sep 1, 2012
I sell a lot of foreclosures and the best bit of advice I have is to really assess whether this is the best deal for you. Foreclosures are a bundle of unknowns and if what you do know is "as much as $50,000" you really have to wonder what else is wrong that you don't know about. This could be a downward spiral that lands the home right back in foreclosure if you don't have the reserves to offset the potential needs. Remember, a home should be a blessing, not a curse.

Please do a very detailed home inspection and make sure the offer is contingent on the results.

This is not the situation I would advise for someone who hasn't sold their existing home yet.

Best Wishes,

Mark Atteberry
http://www.LouisvilleMarket.com
1 vote
Neil Blumberg, Agent, Louisville, KY
Thu Aug 30, 2012
It is not necessarily true that you must fix the house before you purchase it. One of several solutions is to use a 203K rehab loan, where rehab issues and costs are identified BEFORE you close, but performed AFTER you close.

http://portal.hud.gov/hudportal/HUD?src=/program_offices/hou…

Lease option for a pre-foreclosure home is absolutely completely 100% out of the question, for many, many reasons.

To understand the short sale process, take a look at a couple of articles:

http://metro1realty.com/what-is-the-short-sale-process-what-…

and

http://activerain.com/blogsview/348273/foreclosure-solutions…

Call me if you think I may be able to help. 502-254-9600.

Best of luck!
Web Reference:  http://metro1realty.com
0 votes
, ,
Thu Aug 30, 2012
Do not do repairs on a house you don’t own, NEVER, EVER! If your current home is financed with an FHA loan you are not able to use the previously mentioned 203k until your house is sold or your current FHA loan is paid off.

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
0 votes
Rhonda Rober…, Agent, Louisville, KY
Thu Aug 30, 2012
Kelly, I may have something that can help your situation, but need to talk with you to get more information. Feel free to contact me at my email; rhondaroberts@insightbb.com or call me at 502-314-5305. I am a REALTOR with RE/MAX Real Estate Center in Louisville.

I look forward to talking with you.

Thank you.
Rhonda Roberts, Realtor
RE/MAX Real Estate Center
502-314-5305
http://www.rhondaroberts.remax-kentucky.com
0 votes
Bob Costello, Agent, Highlands Ranch, CO
Thu Aug 30, 2012
Remember the main rule in fixing major problems:
It always costs more than it costs......
Foundation problems can be unending - and make the house very hard to sell. That's probably why it went into foreclosure.
0 votes
David Pauley, , Louisville, KY
Thu Aug 30, 2012
If your home is being sold by Fannie Mae, the HomePath Renovation Loan could be a solution. Otherwise, FHA's 203-k loan could help. Both allow for monies to be held in escrow to complete the work.
0 votes
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