We see a house that is in forclosure, that we are interested in. Can you tell me the pro and cons about buying a forclosure?

Asked by Lauriesilva2003, Clovis, CA Sun Aug 4, 2013

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Tim Moore, Agent, Kitty Hawk, NC
Sun Aug 4, 2013
If it is as you say, "IN Foreclosure" then you probably won't and can't buy it. It would be in the process of being foreclosed and probably because it is worth less than what is owed on it, or the seller would have just sold it and paid off the loan and walked away. Since it is as you say, IN foreclosure that is the process the bank uses to transfer ownership after the owner defaults on the loan. So unless the bank is doing a short sale, you have to wait until the foreclosure process is over and the bank takes ownership, at which time the bank can sell it when they want to. They will list it for sale with a Realtor 1-6 months in the future and you can get your Realtor to make an offer on it to the bank.
1 vote
Judy Hardinge, Agent, Fresno, CA
Thu Dec 19, 2013
I've sold a number of foreclosures. The pros are you can obtain a good home at a reasonable price. The cons are you should be willing to investigate by investing in the due diligent inspections which are allowed to all buyers. As stated by others below, foreclosures are sold "as is". A foreclosure can have "heath and safety issues" which you would want to investigate prior to purchase. Generally, in a traditional sell, you have a 17 day period for inspections after accepting the offer, however, most foreclosure sellers change the contract to a 10 day period. In any case, you would have sufficient time to conduct those inspections prior to purchase.

Judy Hardinge
Guarantee Real Estate
BRE # 01876996
3 River Park Pl 3
Fresno, CA 93720
0 votes
Broker Puneet…, Agent, Clovis, CA
Thu Sep 12, 2013
Good question, foreclosures sales is almost like a traditional sale now a days. Most of the times they are as is sale.

Many times buyers get very good deals in foreclosure properties.

All depends.

Call me if you want to discuss in person or over the phone.

Puneet Bhargava,
Realtor, ( CA ) BRE Lic # 01859500 and Notary Public,

CDPE Foreclosure and Shortsale EducationCertified Distressed Property Expert ( Short Sale Expert)
( Free Notary Services for Clients and Friends )

1615 Shaw Avenue, Ste 1
Clovis CA 93611

Cell 559-274-7025
0 votes
, ,
Tue Aug 6, 2013
The downside is that you buy them as is. Be sure to do a real good inspection. If I were your agent, I would do it the same day the deal is accepted. The reason is these banks can be real jerks about letting go of your deposit. So if I want to back out I want to be on top of it and do it before I submit the good faith deposit in. I know some agents would think I am slimy for this. That is what I do.

The first thing you need is a strong pre-qualification letter. Give me a call to get one.

Rich Littlefield
Tri-Emerald Financial a direct lender

NMLS 287206
0 votes
Cindy Davis, Agent, San Diego, CA
Sun Aug 4, 2013
Great question...the only real pro at this point is if it's the house of your dreams. The window of fabulous savings on foreclosures has largely pased...Today's foreclosures tend to see at market value. The negatives are often the condition of the home and the fact that banks won't do any repairs.
0 votes
Sally Grenier, Agent, Boulder, CO
Sun Aug 4, 2013
What do you mean by "in foreclosure"? The foreclosure process can take a long time -- sometimes even a year or more before it becomes available to purchase. IF it does. It could get sold at auction to investors who have to pay cash for it. If it doesn't sell at auction then the bank will list it with a Realtor, at which time you can try to purchase it. I say "try" because most markets are in a "seller's market" now with very limited inventory and high buyer demand. So you'll likely come across other competing buyers. That may drive the price up. And if you do have your offer accepted, the home is sold "as-is" and they won't fix anything. If it does have major issues, you can sometimes get the bank to come down in price.

Good luck!
0 votes
Patricia Jim…, Agent, Fresno, CA
Sun Aug 4, 2013
Well, usually a foreclosure is a AS-IS sale, but they will sometimes do repairs, or will have already don the repairs.
You can sometimes get a really good deal on one.
It is always very important to get a home inspection when you buy a foreclosure or any other home.

If you have anymore questions, please feel free to call me.

Patricia Jimenez BRE#01371374
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