You could be looking at some HUD home ads. I've seen them as low as $1,000. The prices are real. But, when you see the homes you'll know why. HUD homes can be found in any neighborhood. They are non-tenable. Frankly, unless you have a crew, it can take year or two to obtain an Occupancy permit.
I'm sure some foreclosures are available for $5,000. I know there are very inexpensive properties in places like Baltimore, Buffalo, and Spartanburg. And many other places, too. And I congratulate you on getting one so inexpensively, and fixing it up.
But the points made by the others here are also correct. What you'll find on Trulia for REOs are RealtyTrac "listings." I put "listings" in quotes because they're not listings. RealtyTrac doesn't buy or sell houses. And their numbers are often way, way under what the property really is offered for.
So: It is possible to get great bargains with REOs. (Not as often as some people think, but it is possible.) But for people looking at RealtyTrac properties, that's not the answer. Contact a local Realtor and find out what really is available.
Since the purchase of the home, I had a new shingle roof placed on it to replace the old damage tin roof, cost $4500.00, i also had two walls knocked out to widen the living room, cost $1300.00.
I painted every room with Lowes $5.00 marked down paint and I planted scrubs, flowers and outdoor plants topped with pine straw in the yard..... I been living in this 22000sq ft home for a year now...I love it, I own it and it's paid for.
If I can be of any help, please feel free to contact me, Yolanda
These are just teaser ads for RealtyTrac. It gets your attention and gets you into their system.
When you get serious about finding a home we can set up a search that sends new listings to your in box within an hour of them becoming available. That way you don't waste a bunch of time chasing listings.
Also, we have an investor list going for our new REOs. You'll get the information on our new REOs before they ever hit the market! Just shoot me an email to : REO@rwbp.com and we'll get you set up!
You said it, "that would be insane" What you and so many others on line find is Realty Trac ads that show amounts owed on the property. It is very mis-leading, find a realtor that can help you find what you are looking for and current prices.
Hope this helps!
I can't say for certain, but NO; especially in the CA Bay Area. If it looks too good to be true, it most likely is. There are some websites that are very deceiving. I won't mention any names, but a lot of those foreclosure sites that are fishing for your contact information. A foreclosure can be a really great deal ... you could get a nice house for 35% reduced from the latest comps in the neighborhood. These homes are typically sold in 'as is' condition and buyer may have to come into the property with the intention of putting thousands $$ into updating and fixing the existing/active problems, with the payoff that the future resale will most likely increase
Of course the new owner will have to spend thousands more to make the house a home you could live in.