(Closed) Buying a foreclosed home

posted 6 years ago in Home
Post # 17
Member
186 posts
Blushing bee
  • Wedding: August 2012

@tynakinnon:  We bought a forecloser! It was a good price and the perfect location for DH’s work. There were some things that we needed to fix but we knew about it before buying (the roof needed to be replaced because of a large leak.) I had to paint every room because the people that lived here before had painted it bright pink and purple. But we were aware of that. We replaced all the appliances. Someday soon we will renovate the lovong room and put in new carpet. But we love our house and havent had any huge complications.

Post # 18
Member
1980 posts
Buzzing bee
  • Wedding: March 2014

The PP’s have already said most of what I would add, except that we had a FABULOUS experience buying our first home together (which was a foreclosure).

The house had been vacant for 2 years, but was a newer home (built in 2006) and was priced $80K under tax value. We bought it cash after they dropped their asking price. It was structurally very good, but very dirty inside. Mostly from being vacant. 

It is worth noting that the previous owners took EVERYTHING, including doors from the doorframes, light fixtures and lightbulbs, cabinets from the kitchen, half of the flooring was ripped out, and even the little plastic outlet covers. It’s a work in progress but we will end up with a beautiful house one day. 

 

Post # 19
Member
102 posts
Blushing bee
  • Wedding: October 2012

I work for the foreclosure department of a bank.  We are in charge of helping peoples situations through loss mitigation, and if not possible, we take it through foreclosure, fix it up, and list it back for sale.  This entire process is done through my department.  From my experience at the bank, I can tell you that you will not be dealing with multiple banks, UNLESS it is a shortsale, which the mortgagor had multiple mortgages through different banks. Once a house is taken through the foreclosure process, it is now considered “bank owned”. The only way to buy a house that is currrently going through the foreclosure process is to do so through the current homeowners, and depending on their equity, it will either be a traditional sale, or a shortsale. 

NOT ALL FORECLOSED HOMES ARE CRAP! I work for a smaller bank so we can take the time to assess situations and see if they are worth making necessary repairs. I will say that a lot of homes are not maintained, but generally people do not do this because their home is being foreclosed.  One just goes hand in hand with the other, if they do not have money for mortgage payments, they will not have money for repairs. If you found a house, there is no harm in submitting an offer. 

My advice is to use a realtor that has experience in dealing with banks. You can even specify which bank if it is a bigger one.  Just call your local agents office and ask if they have any realtors with experience in handling offers on bank owned homes through Bank of America, for example.   If you are flexible with time, and want a deal, than there is no problem buying a bank owned home, just do not only limit your search for these types of homes, and hire a good home inspector!

Post # 20
Member
97 posts
Worker bee
  • Wedding: January 2014

I just put an offer in on a forclosure!! It needs minor work and i have to buy all the appliances, but in the end i am getting a super awesome deal!! Forclosures are sold as is so bringing in an inspector will only benifit you because the bank wont fix anything since it is a forclosure. Also if you are financing and get an inspector and there are things wrong your bank might not finance the home then. So you can opt out of an inspector and just get one after you purchase the home for your own personal option. 

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