how do i buy a foreclosure home? could i find a good deal, is it a good idea for a first time buyer?

Asked by Marie, 11412 Thu Jul 23, 2009

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6
First Last, , 90002
Sun Aug 9, 2009
I just bought a foreclosed home as an investment in June, in Dearborn, Michigan (near Detroit). I could not have done it without the Michigan real estate agent I used, who specializes in these kind of sales.....Even though I am a licensed real estate agent!

If you want to go that route for a home for yourself, your first step is to find a real estate brokerage that handles a lot of these sales, or that specializes in them. Find an agent who has done 20+ of these, then call a couple of the buyers and see how it went for them. These houses are also called REO's (for real estate owned), and bank-owned. (A short sale is something quite different.)

There are many risks associated with bank-owned homes, I discovered. The foremost is latent mechanical defects, which the bank may not be required to disclose. My house had burst pipes from freezing that were covered up and not visible on inspection. You won't be able to talk to the former owner, so you will be completely unable to find out when the heating system was installed, for example. It is really buyer beware.

On the whole, I cannot recommend this to the average first-time buyer.


http://www.nestseekers.com/Company/Agent/874
0 votes
Marco Ascazu…, , Astoria, NY
Sat Aug 8, 2009
I 'm very sorry for the lateness, I took some days off for vacation but I'm back to work!..

Don't try a foreclosure home, it's a little complicate and risky, you better try a REO property, for sure can be a lot better in price and process. I do not recomend foreclosure unless you have a very good broker and you are able to do your homework and take the risk any way.

If need some help I'm available to discuss your options...!
0 votes
Voices Member, , Benton County, OR
Fri Jul 24, 2009
Marie,
The Banks and the Gov. have created sites to provide the Public access to information about their Properties for sale (REO/Foreclosure) and the purchase/bid process.

Sites like these.... http://www.homepath.com/ .... http://www.wamuproperties.com/ ... http://hud1.towerauction.net/CA.htm ... http://www.countrywide.com/purchase/f_reo.asp

You can browse these sites at your leisure and there is much information provided for the Public...

You can find the links to the Bank/Gov sites here... http://www.mortgagenewsdaily.com/wiki/REO_Database_List.asp ... http://www.biggerpockets.com/bank-reo.html

Good Luck, Dunes
0 votes
Marco Ascazu…, , Astoria, NY
Fri Jul 24, 2009
Yes, you can buy and also can be a good deal. I suggest you to hire a good real estate agent and do your homework. There are plenty homes available in the market and one of them can be yours.

If more info needed, I cover your area, you can contact me,
marco ascazubi
718-947-2602
marco@seenyhomes.com
0 votes
Dallas Texas, Agent, Dallas, TN
Thu Jul 23, 2009
a) Need lender approval - work with Realtor
b) Are you in a hurry to close OR do you have time?
c) If you are in no hurry that is best find an agent willing work with you for a long period of time work within your specifications.
d) Foreclosures have drama not due to listing / buyers agent

Good luck remember you receive annual tax benefits.

National Featured Realtor and Consultant, Mortgage Loan Officer, Credit Repair Lecturer
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Lynn911
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0 votes
Bill Eckler, Agent, Venice, FL
Thu Jul 23, 2009
Marie,
Buying a "foreclosure" property is very much like buying a home through a regular sale except you are dealing with the bank as the owner. They may also require real estate agents to use their specific forms for the transaction.

Purchasing a foreclosed home is a good way to save money and get started as a home owner. Our recommendation is to contact a real estate professional to support your interests. They willl be able to guide you throught he process and answer your questions along the way.

Best wishes
The Eckler team
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