(Closed) Has anyone ever bought a foreclosed home?

posted 7 years ago in Home
Post # 3
Member
2829 posts
Sugar bee
  • Wedding: June 2011

We bought a house that had been through the final foreclosure (repossessed by the bank), so basically the purchase price was the remainder of the previously owing mortgage (we negotiated that the bank be responsible for all back taxes).

Before we could close on the house we had our lawyer ensure that there were no liens on the house (these could/would impede our ability to purchase). Our lawyer handled a lot of other details regarding the sale, the terms of the contract, etc. if you speak with a lawyer who handles property contracts they will be able to explain in more detail what their role is.

Depending on what stage of foreclosure the property is in will determine how easily the process goes.

Start to finish the process took a month (from accepted bid to closing date), but we had very few hurdles and everything went very smoothly.

I would also recommend talking to a mortgage/loans ‘officer’ (agent) at the bank and they can walk you through the process & answer specific questions accurately in regards to purchasing houses that are being or have been foreclosed on.

Post # 4
Member
322 posts
Helper bee
  • Wedding: September 2012

I bought a foreclosure in March 2010. It was priced GREAT and didn’t need a lot of work.

Although I have heard stories about the banks taking soooo long to close on a foreclosure property but I didn’t have any real issues.

The only thing I would suggest is that if you decide to put a contract on the house and it gets accepted, get the inspection immediately because there may be issues with the house that are minor but would still cause the loan not to go through. Also, I remember having a lot of trouble getting the water and such turned back on becuase the house had been vacant for over a year so they winterized the pipes and that stuff is a mess to finally flush everything out and get the water back to normal!

Also, check with your tax office to see what tax brackett the house falls under. The house that I bought was being used as a rental so the property taxed were doubled. So when I bought the house, I got stuck paying double the property taxes for the previous year. Luckily, it goes down in July and it sheds $250.00 of my mortgage since my taxes are included in the escrow.

 

Good Luck!

The topic ‘Has anyone ever bought a foreclosed home?’ is closed to new replies.

Find Amazing Vendors