What is the catch with the for closures for $1?

Asked by Curry.phelps, Portland, ME Thu Apr 19, 2012

I have seen some of the foreclosures listed for sale at $1. Has the bank not priced these properties yet? Please give me the scoop....

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Carla Muss-Jacobs, Principal Broker/Owner ~ Exclusive Buyers Agent ~ ABR, CEBA’s answer
Carla Muss-J…, , Portland, OR
Wed Jun 6, 2012
This got posted in the Portland, Oregon questions. Did you notice if they were on an "auction" site? Not know the standard of practice in any area outside my local market, perhaps this is a way of starting out?
0 votes
Sharon Wenger, Agent, Lake Oswego, OR
Sun May 27, 2012
You might have noticed they aren't telling you WHERE the homes are at... no address for you to check out either. I have seen people buy homes in some areas for REALLY cheap prices (not $1 really, but way below market) and then found out there were thousands of dollars of tax liens and city liens on them, way more than what the property could be sold for, or else it had asbestos shingle on it, or the house was slated for demolition by the city, etc. You have to find out what you are really getting, in other words.

My experience is that most of those "too good to be true" offers are just fishing for buyers, they want your contact info, so you go to a "web capture" page, and then they try to sell you something else. So it's the old "bait and switch" scheme. "Oh, that house is sold, we don't have any more of the $1 houses, but can we interest you in this?" And then, of course, you'll find your name and email address have been sold to several hundred online marketing companies!

I have to agree, the best procedure is to find a good, experienced agent to represent you, one who knows the area where you are looking. There is no substitute for "feet on the ground" knowledge of the area when it comes to real estate. Interview a few agents in the area and hire someone to be your buyer's agent, especially if you want a short sale or foreclosure, as there are many pitfalls to beware of, and you want someone looking out for your interests!

Sharon in Oregon
0 votes
Tom Inglesby, Agent, Portland, OR
Thu Apr 19, 2012
The best deals are not foreclosures but bank owned. There are many scams out there and we think we have seen them all and then a new on comes along just a little different but it is still the same old. Work with a Realtor and they will find you the best buy. Good luck to you.
Tom Inglesby
0 votes
Marvin Von R…, Agent, Tigard, OR
Thu Apr 19, 2012
Its a scam. Sure, people have bought properties at foreclosure sales for pennies and bought delinquint TAX leins that resulted in owning property for a FEW CENTS so it isnt really a lie---just very unlikely. There ius a reason these advertisers want you to go there. One way or another they make money.
0 votes
Don Tepper, Agent, Burke, VA
Thu Apr 19, 2012
Unless it's through a program that Melina is referring to, they're fake. There are a lot of fake ads out there pretending to be listings.

Work with a Realtor to separate the scams from the real properties.

Hope that helps.
0 votes
Curry.phelps, Home Buyer, Portland, ME
Thu Apr 19, 2012
Thanks.. I figured these listings must have been in
0 votes
Melina Tomson, Agent, Salem, OR
Thu Apr 19, 2012
There is a program for governments to buy some foreclosures for $1. It's a program through HUD. http://www.hudhomestore.com/HUDHome/DollarHomes.aspx
0 votes
Mike Sullivan, Agent, Gainesville, FL
Thu Apr 19, 2012
Curry...I believe what you are seeing are listings which are posted by RealtyTrac. These are listings in which the foreclosure process has been initiated....they are not actually on the market, nor have they been listed for a firm price (obviously). Hope this helps!
0 votes
Marge Bare, Agent, Portland, OR
Thu Apr 19, 2012
where are you seeing that? that would be helpful, but I can tell you that is probably exactly the reason, because there's no way homes will be selling for a $1. I can tell you figured that out, and you're correct. People need to be very cautious about claims made online, just as you suspected, because it can be misleading.
Best to you...
0 votes
I just perused that site and they aren'y $1. They are 50% off.
Flag Wed May 2, 2012
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