(Closed) Buying a foreclosure? Need advice

posted 7 years ago in Home
Post # 4
Member
1105 posts
Bumble bee
  • Wedding: October 2009

In my personal opinion, if you aren’t planning on staying beyond 2012/2013, I wouldn’t buy.  You just never know what the market will be like in a couple years on if you would be able to sell it.  And if you couldn’t sell it, renting might be a problem is you are living in MI or CA unless you have someone right there that could take care of any problems that will arise.  I’m just a little leary because we bought a foreclosed home last year and are still trying to sell my house and it is only listed for $50,000.  So that is my take on the situation, just one side, I’m sure there will be a case for the other side.  It does sound like a good deal if you were going to be living in it for more than a couple of years!  Good luck!!

Post # 5
Member
1137 posts
Bumble bee
  • Wedding: September 2010

It is generally not a good idea to purchase a house if you only plan to own it for 1-2 years. Besides the purchase price, you also pay closing cost fees when you purchase and closing cost/realtor fees when you sell. These can add up to over 10,000. Plus, for the first few years of a mortgage, your payment mostly goes towards interest. So when you go to sell, you will need to sell for much more than your purchase price just to pay off your balance and cover fees. This doesn’t even include all of the upgrades you would put in.

It would be very difficult to recoup your expenses after thats short amount of time.

Post # 6
Member
6572 posts
Bee Keeper
  • Wedding: February 2010

I wouldn’t buy it. It can take many months to buy a house in forclosure. By the time you actually get to have it and fix it up, you’ll want to move. And you don’t know what the market will be like then so there’s a good chance it’s just not worth it.

Post # 7
Member
1991 posts
Buzzing bee
  • Wedding: October 2011

Like PP, I wouldn’t buy it.

I bought a foreclosure that had NO upgrades necessary (I only did some changes because I wanted to, changed the VERY nice carpet to wood, painted the walls a different color, etc.,). When I bought it, I said to myself that I’ll probably stay in it 5 years and then move on because I’ll probably be getting married.

Unfortunately, the market tanked, and so did the tax appraisal value on my home. This will be my 5th year in my home and I can’t even think about selling it unless I want to take a significant loss because although it was a foreclosure, the appraisal is even lower than what I purchased it at. I’m now getting married and we decided to stay in the home at least another 2 years to see if the market will get better.

If you’re going to attempt to move in 1 – 2 years, I wouldn’t buy it.

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