Buying a Foreclosure in the current market?

Anyone here have experience buying a Foreclosure in the current real estate market? Wife and I are looking at houses and found a house we both like based on the pictures we're seeing. Going to see it tomorrow night. Issue is, since we had to pay full closing on selling our house in July, we're not sitting on the funds to be able to pay full closing for buying a house right now. The real estate agents I've talked to have all told me that the seller paying closing costs right now is pretty much the norm, but I'm not sure if this would still hold true for the bank. Maybe it will though, especially if we make a full price offer (not sure if we would or not...). Thoughts?

Also, foreclosure deals typically take a little longer to close right? I'm not pressed on time but more just trying to figure out what to expect if we put in an offer.

 

In my opinion...forget the closing cost.
work on the final price

estimate you closing cost, or get someone to help you estimate it and someone good will get you really close to what they will be.

Then work it into the final price/offer etc.
Never pay the asking price, its the bank/lender, their money is stuck and they want out...professionally haggle with the price.

just my 2 cents.

 

If its a foreclosure, make sure you can get a title.

Jus' sayin....

 

"Little longer" = understatement. Plan on 4-6 months at best. Also, being a foreclosure, there can be a higher chance on the appraisal coming in super low and financing getting turned down, unless seller(bank/owner) is willing to come down on price.

With no funds to pay closing or put 20% down, I wouldn't guess you'll get enough financing to cover all the costs plus the actual purchase price due to the appraised value, in todays market that is. Unless it's in a highly desireable area with a ton of GOOD, LEGIT comps, sold in the past 45-60 days.

Hope it works out, BUT do your homework first. Zillow.com, auditor's site, etc.

 

What if your state doesn't require them?

 

I'd be doing a USDA loan here for 100% financing. Home appears to be in excellent condition. Only missing a fridge, and washer/dryer. IF that's all that's missing, I'm not worried at all about an appraisal. It's an 1800 sqft house on over an acre with a 2 car detach garage. Built in 2004 with all hardwood floors.

Comps from the houses around it are a little tricky as the only one to sell since they were first built was in 2010 for $199,000 which is $10000 over what its currently listed at. Plus 2010 the market was much lower. This house sold after it was built for $270000 in 2005. House values around it are hanging around $240-250k right now based on Zillow so it should be a pretty good deal unless the house is trashed (it isn't in the pictures they've posted at least).

 

I'll take a certificate of origin so I don't have to pay tax

 

The first home that I ever bought was a foreclosure. It was basically a custom home that was built by someone who went bankrupt right after the house was completed. I got it for a steal and got a new house that nobody ever lived in. It did sit on the market for almost 2 years though. You have to be patient as hell with foreclosures.

From my experiences, and that of others (i have a few friends who only buy foreclosed properties) go for it.

But, noob and Madcat are spot on....Foreclosed houses take forever...way too much sharks in the water with them also. Especially house flippers, around here.

 

When buying a foreclosure from a bank, I make a half price cash offer. They almost certainly will not accept it, but you will set the tone right up front. They will counter. We have purchased properties where all we paid was closing costs plus a dollar just because the bank wanted it off the books. The act of foreclosure clears up the title with the exception of federal tax liens in most cases. Any property taxes due will be dealt with at closing. Most states give the person foreclosed on a right of redemption. I have never seen one exercised. Ask the listing agent how long the property has been on the market and if there are pending offers. If the house is not generating much activity you may get a really good deal. You can't hurt a bank's feelings. If you absolutely love the house and the price seems fair, just make a full price offer to keep people like me from beating you to it. Closing is usually pretty rapid. The bank will have taken care of a lot of the paperwork before listing.

 

I live in a super rural area. I don't think there's a lot of money to be had in flipping this house since the asking price is probably not much lower then you could get if you made the only minor improvements it needs. Which is really only a fridge and maybe the kitchen could be upgraded for cheap. I'm ok if it takes awhile. Wife and I are crashing with her in-laws. The longer it takes actually puts us in a better position when we go into the house.

 

can that title be 2013 MOTO GP CHAMPION OF THE YEAR?

 

Is it bank owned, short sale, or owned by HUD/Fannie Mae/Freddie Mac?There could be a big difference in how each is handled.If it is bank owned or short sale,it can be a slow tedious process.The ones we have purchased were through HUD and it was bid only with a deadline.It is a fairly simple process and you will have an answer very quickly.If the house needs little work and meets FHA finance guidelines,it could sell at or above asking price depending on the market.In the area of Atalanta where we live houses are moving quick,with many going at or above asking price according to our agent.

 

Our last two houses have been foreclosures.

As people have said, it takes a lot longer!! But well worth it.

Now have a house on 23 acres. 3 stall attached and heated garage. 30x70 pole barn with a sweet bar in it.

And yes, Putter and Chumley have violated it...