Home Buying in Los Angeles>Question Details

michael, Home Buyer in Los Angeles, CA

I want to buy a condo or house in Los Angeles, is it safe to buy foreclosure house ? Are there any potential problems?

Asked by michael, Los Angeles, CA Tue Jun 25, 2013

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Good morning michael,

I've been helping First Time Buyers for 23 years as a mortgage professional and I will tell you what I have always told my clients here in New York: If you are a First Time Buyer, steer clear of foreclosures and short sales.

Foreclosures are someone else's headache. The home probably has not been well-maintained and you're a First Time Buyer adjusting to paying a mortgage. Do you really want to walk in the door to someone else's deferred maintenance that YOU will have to pay for? Also, if you're thinking there are deals to be had in terms of lower prices, mostly those "deals" go to professional investors who can pay cash, negotiate hard with a Lender, and close fast.

There are plenty of motivated Sellers with their homes listed on your local MLS. Go find a good Local Mortgage Banker, get prequalified, then find a great, experienced Realtor, and buy the home you want at the price you're willing to pay.

Trevor Curran
NMLS #40140

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0 votes Thank Flag Link Wed Jun 26, 2013
As with all properties, I would always highly recommend a home warrantee. Many foreclosures are not much cheaper than standard homes right now, so you will definitely want your agent to run the numbers for the property you are thinking of purchasing. Do the normal inspections such as home inspection, possibly fireplace inspection, if it's a house-roof inspection, mold inspection, and depending upon if it's a house in a hilly area-geological inspections.

Give me a call and we can discuss your home purchase more in detail.

Have a great day,
Heather Paul, Broker Associate, Realtor
Coldwell Banker
0 votes Thank Flag Link Tue Jun 25, 2013
Yes they are safe to buy,make sure you do an home inspection too. I would also check the sewer line with a camera.You can also get all the permits that were ever filed on the house .There is no seller that has knowledge of the house so you will get no disclosure that amount to much.Also get a home protection policy ! Good luck !
0 votes Thank Flag Link Tue Jun 25, 2013
I personally like selling REO homes. The lenders tend to be no non-sense, homes tend to be reasonably priced. In West L.A. the real estate housing market has changed. There are a minimal amount of foreclosures, short sale and majority of standard sales. There is risk with purchase of any property. Be sure to always perform a professional inspection on any accepted purchase within days for acceptance. Decide base on home inspection if home is worth investment. DON'T limit your search to only foreclosures. Consider all active listings in area of interest.

For Assistance:
CALL: Gail Mercedes Cole
EXP Realty
0 votes Thank Flag Link Tue Jun 25, 2013
In real estate purchase whether foreclosure, reo, standard sale, probate, etc., there is always risk involved. There are always issues or problems to negotiate and to take care. You need an active (and experienced) real estate professional to guide you through the process.

0 votes Thank Flag Link Tue Jun 25, 2013
With any home, you need to check things out. Foreclosures tend to get way more offers than traditional sales so be prepared for still competition.

Lastly, don't limit yourself to just foreclosures. There are far fewer of these and those that exist tend to sell for top dollar. Take a look at all homes in your market that might appeal to you.

Good luck.
0 votes Thank Flag Link Tue Jun 25, 2013
Is it safe? It can be...

The #1 word when purchasing a foreclosure is "inspection"... Never purchase without having the necessary inspections completed.

Foreclosures can be a jewel that just needs a little polishing... or a Rock that needs a full demo... Only way to know is to complete inspections... which cost money.
0 votes Thank Flag Link Tue Jun 25, 2013
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