Foreclosure in 54495>Question Details

Tracey, Other/Just Looking in wisc rapids

what makes buying a Foreclosure home different?

Asked by Tracey, wisc rapids Tue May 6, 2008

I've notice that almost everywhere i go there's "HOME FOR SALE" signs! i've also heard that right at this moment buying a house is the cheapest and easiest because of so many foreclosure. Is it true? What is the benefits of buying a non-forclosure home and a foreclosure home? i'm looking around.. not sure if i should rent or buy a home. with the finacial situation i'm in right now.. i'm wouldn't buy a house! but, the house i'm living at is for sale by the owner and i'm suppose to start looking for a new place. My husband wants to buy, but he's the only income for 3 months since i'm on summer break! so, either i get a temp full time or.. we rent! still, i'm wondering if forclosure would be right for us? what do they usually ask for down payment? how much is the monthly payment and insurance? i'm all new at this so.. help me out.. i'm all ears......

Help the community by answering this question:


They worst decision you could make is to buy if you may be forced to sell back into this market. The transaction costs are high, and this would likely cost you serious money. So, if your finances are "iffy", then buying is not a good option.
Foreclosures are not automatically a good buy. Banks have appraisals or broker price opinions, and they try hard to get the market value indicated by these "appraisals".
Sometimes, non-foreclosures (or perhaps "not-yet foreclosures") can yield a good buy. With foreclosures, well-priced homes can go quickly because the whole buying community knows about them, and most of the interested buyers will NOT get it (only one will, after all). With non-foreclosures, a persistent broker may be able to get a response from a seller that provides YOU, and only you, with a great deal, with no other buyer competition.
But, in the end, you need the financial strength to NOT be forced to sell until you want to.
If you might be foced to resell shortly after buying, then you should pass, and not buy.
0 votes Thank Flag Link Wed Oct 20, 2010
Buy now yes oh yes,priced right the foreclosure can give you a twenty percent your twenty percent down, or get a rural development loan or a few others out there, but you have to have squeaky clean credit to get it. You also can reap benefits on your tax,s at the end year, and tax credits on improvements , from are president of the united states for insulation, furnaces , water heaters, many many things home depot can tell you or menards.
Buying a foreclosue compared to a non one is you might get it a lot cheaper or not! You have to do your home work, and check all the prices, and what are their amenitys. first pick a great realtor, and sign a buyers agency agreement ask. other wise realtors are all working for the sellers, we 100% work for the sellers.
0 votes Thank Flag Link Tue Oct 19, 2010
Hi Tracy - Looks like you have received some great information thus far. Before you go looking for homes (whether you will buy now or 6 months from now) , it is important that you have all the facts in front of you so you can make the best decision for you and your family.

It is a great time to buy, however it must be a good time for you also. As the others, I would suggest that you talk with a mortgage professional that will walk you through the pre-qualification process and provide all the information necessary for you to make a sound decision. Doing this will allow you to plan accordingly and no suprises. There are several great first time home buyer programs available to you in Rapids.

I wish you the very best. If I may be of service to you and provide more detailed information, please feel free to contact me. Also, please visit my website where you will find more information to assist you in making your decision. Make it a great Sunday!!!!!!

Gwenn Tanvas
Mortgage Planner
888-396-6159 press 0
920-858-1203 cell
0 votes Thank Flag Link Sun Jan 18, 2009
Buying a foreclosure means having to act quickly. They often sell the day they hit the market and contrary to popular belief there aren't that many in Wisconsin. The best thing if you are serious about buying a home is working closely with an agent who can monitor the listings for you. It might take a few swings but eventually you can get one.
0 votes Thank Flag Link Fri Oct 31, 2008
Darren has some great thoughts on your question.
Your comment: "With the financial situation I'm in right now, I wouldn't buy a house!" makes me think that you and your husband might want to get pre-qualified or pre-approved at a lender of your choice. Buying a foreclosure property is still buying a house - just one that is owned by a bank. Payments, insurance, taxes, maintenance, utilities, etc. are all paid by you, and these amounts vary as the price of the home does.
In some cases, the bank that owns the property will offer a favorable mortgage to a qualified buyer.
1. Connect with a local lender and get your financial situation checked out. It should cost you nothing for a pre-qualification. If you get a go-ahead:
2. Hook up with a local real estate agent. Have that person help you navigate through the local market and assist you in locating a home you will love, AND be able to afford.
Best wishes!
0 votes Thank Flag Link Wed May 7, 2008
Tracey- It might be a good time for you to buy, it might not. I'd suggest, based on all the questions you have regarding financing, that you find a reputable mortgage lender and ask to sit down with them to have a "pre-qualification" discussion. This is typically at no cost to you but in that meeting they can explain all of the ins and outs of financing a home, what a typical monthly payment would be based on the amount of a loan you might qualify for and even cover what special government financing programs may be available to you.

As for whether or not now is a good time-it depends upon your timing. What I mean by that is real estate, traditionally, has alway appreciated in value over time. The key is the "over time" part of this statement. If you know you'll be in the home for 4-5 years minimum, then you should see some adequate appreciation for the time and money spent. Along with that you'll see a personal income tax advantage as you have the opportunity to write off the interest paid toward the home loan in that timeframe as well.

How to get started? It would be best if you called a well known and well respected REALTOR in your area. They have great connections in the industry and can get you in touch with a lender who can help you get a sense of what you'll qualify for in a mortgage and more importantly, what you'll be comfortable paying on a monthly basis toward the mortgage. Beyond that they will be in tune with the local real estate market and can guide you through all of the questions regarding what to buy, what price is fair for a property, what opportunities there might be in the foreclosure market, etc....

Good lukc and great question!
0 votes Thank Flag Link Wed May 7, 2008
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