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Message |
    
MQ42
Citizen
Username: Mq42
Post Number: 97
Registered: 2-2004
| | Posted on Friday, March 17, 2006 - 4:16 pm: | 
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Thanks to all those who responded on my mortgage question, you were very helpful.
And hopefully you'll be able to answer this question too..
I'm wondering what the general idea is on "forclosure" homes? Are the as good as they sound or is there a catch of some sort?
For example, if a house is listed as $250,000 is this just a starting price and people usually have bidding wars which eventually bring the house up to the price it should have been sold for in the 1st place?
Can somebody list the pros and cons maybe..
Again, new to the country so need to find out as much as possible from those in the know..
Thanks in advance!! |
greenetree
Supporter
Username: Greenetree
Post Number: 6935
Registered: 5-2001
| | Posted on Friday, March 17, 2006 - 4:31 pm: |
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We looked at a foreclosure a few years ago and one of the houses in our neighborhood was a vacant fore closure for a couple years. So, my info may be outdated.
Keeping in mind that we were looking before the boom (houses were under $200k at the time), we looked at a tudor in Montrose Park with a then-market value of $300k. We didn't bid on it (our budget was much, much lower) because it needed too much work. It ended up going for $300k.
The house across the street from us needed significant work. A contractor bought it, did a half-assed renovation and flipped it. The people who bought it had to redo a lot of work.
Remember that by the time a foreclosure hits the market, it's been neglected and vacant for awhile. The good news is that the mortgage holder isn't looking for the best price like a homeowner seller is; they just want their money back and to offload the property.
I'd get a good contractor to walk thru with me and get opinions on how much it would cost to do the necessary work. You can base how much you are willing to bid on that. And, expect the unexpected.
Good luck. |
MQ42
Citizen
Username: Mq42
Post Number: 98
Registered: 2-2004
| | Posted on Saturday, March 18, 2006 - 5:58 pm: |
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Thanks Greentree!
Just wondering, when you looked at the forclosure a few years ago where did you hear about it? is there a website where all local forclosures are listed or whats the procedure for finding and following up on a forclosure house? |
greenetree
Supporter
Username: Greenetree
Post Number: 6941
Registered: 5-2001
| | Posted on Saturday, March 18, 2006 - 8:49 pm: |
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There may be a list, but our realtor showed it to us. |
Just The Aunt
Supporter
Username: Auntof13
Post Number: 4393
Registered: 1-2004
| | Posted on Sunday, March 19, 2006 - 6:41 am: |
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Sometimes there are foreclosures listed in the paper. Years ago, maybe 8 or so, a friend of mine bought a foreclosure in Mountainside. It ended up costing him a lot of money he didn't expect because he didn't do a Title Search. turned out there were several hundred thousand dollars worth of leans on the house that now became his responsibility.
Lesson learned by him, do a Title Search the next time. And as Greentree suggested, make sure you have a contractor walk through with you. |
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