Atlanta GA 30341/30319 - foreclosures on 3 homes in this area. What is the best way to try to buy?

Asked by Lane, Atlanta, GA Mon Jun 30, 2008

I'm a first time home buyer. I could buy a $250,000 house now with 10% down and I have good credit. I have some cash, but not enough to pay all cash for a foreclosed home outright. I want to live in this area (near Murphey Candler park) but can only really afford a foreclosed home in the area. Otherwise, I'd go a few more miles away (east or west or south of the park) to buy. If these homes are going up for public auction tomorrow, what should I do? Should I rush to get approved on a mortgage? Wait until the bank owns the home officially and then try to buy?

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Lee Taylor, Agent, Decatur, GA
Tue Jul 1, 2008
You have so many very favorable options Lane, but they all start with confidence in the following words:

" immediately available funds"

A mortgage professional is your first partner - get some referred names from family or friends.

The next partner that you need is a really good real estate agent, and you have over 30,000 to choose from in metro Atlanta.

Call any one of us and start interviewing. First question from you - who do you recommend that I speak with about my mortgage financing options?

After we establish a firm financial foundation, the next steps should be smart, fun and productive, nevertheless your Realtor will work very hard for you because your best real estate choices are probably needles in haystacks - the best go the quickest.

The 3 areas of focus for the "Millionaire real estate investor" from the book by the same name:

1. Criteria - W.W.H.W.W. ?

2. Terms - begins and ends with confidence in your financial stance

3. Network - your Realtor choice should be a major advantage.

How soon do you want to be prepared to write a contract and close ?


I wrote an article called "Don't Buy a Foreclosure Just Because It's a Foreclosure" back in February - check out the web reference.
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Tori Lawson,…, , Fayetteville, GA
Tue Jul 1, 2008
Hi Lane.
I think you should speak with a lender to find out about any other programs available that you may qualify for first, do you have an agent? Foreclosures can be so sticky if you have no idea what you are doing- could end up being your worst nightmare if not experienced. Please let me know if I can be of assistance.
Best of luck to you.
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John Reinhar…, Agent, Atlanta, GA
Mon Jun 30, 2008
Lane -

I speaking in general terms here & without knowing about the actual homes you’re talking about. If these homes are going to the auction block for the first time the percentages are against them being sold in today’s market the first round unless there unbelievable deals. There are so many things that can happen. Don’t be surprise if houses are pulled the day of auction for this is typical.

The best way is to retain a realtor that has experience in foreclosures; get your financing in order & negotiate directly with the lender (REO department) through your realtor. You want the house before it is foreclosed on. An auction at the court house steps means nothing. I represented buyers & have kept houses from being auctioned off for six months.

Negotiating with the REO department is very different & you’re not negotiating with a regular old home owner & their agent. You’re negotiating with corporate intuitions here & they play for keeps.

I would be happy to talk with you about the process any time. But please retain a realtor with experience in foreclosures.

John Reinhardt
RE/MAX Greater Atlanta
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Scott Bitter, , Atlanta, GA
Mon Jun 30, 2008

Foreclosures can be tough to deal with if you don't know what you're doing. They can also be very risky. Sure you may get a great deal on something, but after all of the headaches of repairs go away, sometimes it may not be worth it. There are people that do this type of thing for a living and are very accomplished at it. It is something, in my opinion, that takes practice and a lot of patience.

To answer your question about trying to obtain a mortgage prior to an auction, you must have cash to buy a home that is up for auction. Dealing with banks or other lending institutions that hold the deed for homes that have been foreclosed upon is probably your best bet. Depending on the length of time the institution has held the property, motivation to move it may be very high. I have seen some pretty big discounts occur in this situation. They have a bottom line price and many times are will to take a hit on it to get out from under it. The only thing to do is go after it and not be set on any one property knowing that it will be pretty competitive. The dream of finding the perfect home with minimal work is just that...a dream. I suggest moving forward with both eyes open and plan on unexpected additional work.

If I were you, I would work with a real estate professional and definitely have your financing in order to be able to react on very short notice. There are good deals to be had, but many people get in way over their heads and end up breaking even or even losing on the deal when it's all over.

Best of luck and feel free to contact me if I can be of assistance.

Scott Bitter
ERA Buckhead Realty
Web Reference:  http://www.ScottBitter.Com
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Andrea Steele, , Marietta, GA
Mon Jun 30, 2008
If they are going up for public auction tomorrow they will be sold on the courthouse steps. If no one buys the homes on the courthouse steps then the homes will go back to the bank and they will sell them as foreclosures. It is completely up to you how you decide to purchase a home and it is a great opportunity for you to purchase a foreclosed home in this market. I would take your time and not rush into things. It is a buyers market which is good for you.

Sometimes people think they are getting a great deal by buying a property through an auction, but in reality it could backfire. You would not have the opportunity for an inspection nor really know what the home is worth and you would not have someone representing you on the buying side. If you decide to purchase a home feel free to contact me with any other questions you may have
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James Dudley, Agent, Suwanee, GA
Mon Jun 30, 2008

Have you considered purchasing a HUD home? You can qualify for FHA and pay as little as $500 down on a home.

Give me a call for more details and I will see if there are any in the area you are looking.

James Dudley
ERA Sunrise Realty
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