What are the advantages and disadvantages of buying a foreclosed home?
547333
We bought a foreclosed home last year.  There was some extra paperwork to sign, and it took an extra 6 weeks to get a closing on a cash deal.  The house had been vacant for 2 years and had not been well maintained prior to that.  Once the power was turned on the hot water heater, furnace, and fridge did not work.  We were able to fix the water heater for $20 in parts and the furnace for an $85 service call.  We had to buy a new fridge.  We have had a slew of plumbing issues.  We have replaced all of the floor coverings, some drywall, fixed the roof in a couple of spots, gutted the kitchen and bathroom.  We have done all of the work ourselves (other than the service call on the furnace and one niggly little spot on the plumbing) and saved a ton of money.  With all of that we have still invested less than half of the market value of other homes in our area.  We are almost done with the renovations, and it is beginning to feel like home.
735126
Talk to your Realtor about this.  He should know a mortgage company that can help you.  As golfer said, not all companies are FHA approved, and so they don't have that option for you.  FHA is a bit easier on your credit score as well as medical bills.  Do get pre-approved prior to shopping for homes.  You don't want to be paying for inspections or appraisals, only to find out you don't qualify for that much house...\n\nFHA is also more lenient as to where your down payment and closing expense money comes from.  You can have the seller pay part of your costs.  FHA does want for you to have a minimum of 3% invested in the house.  This comes out to 2.25% minimum down payment and 0.75% towards closing expenses.  Even this 3% could come from relatives or non-profits or government grant programs.  A knowledgeable loan officer (versed in FHA) can help you with that.
357827
Yes, The property is used as collateral for the loan contract that you have with the lender. The lender can foreclose on the property to recoup there money that you owe in arrears.
94951
To purchase a rehab home, yes, in order to resell and make a good profit?  Yes.  However I would not want to deal with someone about to be foreclosed upon, because I think, in my opinion, that you would be preying upon someone in a desperate situation where they might not be making rational choices because they feel they have no other options.  \n\nThere usually are other options, and if I was in that position then I would contact a local mortgage broker, explain my situation and see if they could help in any way before I "sold" my house for cash to get caught up on bills that are behind.
220031
Renting would give you the most flexibility. Your cash would also be available for investment, emergencies, etc.\n\nIf you rent you don't have worry about upkeep on your home and maybe no yard work. \n\nThe down side, less control over who your neighbors might be. Probably less privacy.
498026
Pros\n-longer to pay it off\n-monthly payment is lower so it might be more managable for lower incomes\n\nCons\n-interest rate is higher than for shorter duration loans\n-paying more interest over time (this is a big negative)
187755
Yes, \nIf you want the property, you have to comply with the conditions of owning it.\nNote, I am sure there is a provision of recapture, if you sell or move within the 5 years.\nMeaning you will have to pay a penalty fee of sorts, if you do not comply with the agreement.  There might even be a clause that allows the city to foreclose, if you don't comply, so make sure you understand the conditions of the contract.  \n\nUsually, a deal like this is worth the investment if you follow the provisions of the contract.  Cities don't want investors in such transactions, that is why they put a timeframe of ownership in the contract.
638680
Unless you are the buyer or the seller, it's really none of your business. If you try to approach potential buyers, and you do not word things in exactly the correct way, you could get sued when they decide not to buy. The buyers will be having a home inspection prior to closing; hopefully they've selected a good home inspector who will catch these things. But you should stay out of it unless you have a financial interest in the sale of the home, or unless you like getting sued.
896227
Yes they can. If the property is in foreclosure then the loss of value is to the lien holder, not your mother, who will obviously be abandoning the property.
97831
I'm assuming you want to ask your local bank if they have any houses in foreclosure you can buy.  Best way to find out about that is to get a foreclosure list.  (Ask your local title company)  It will show what houses are going into foreclosure and where they will be up for auction.
293597
Depending on your market you can find existing Section 8 properties for sale or  you can buy, develop and rent/sell them yourself. You will have to decide if you are more interested in single family homes or multi-family properties. Both have their advantages and disadvantages and your investors will probably dictate the amount of risk they will accept. A good place to look are real estate agents who deal heavily in foreclosures and "REO" property that has reverted back the the lender and is being sold at a discount.
838934
For me, the reasons to buy a condo include location and access to the things I want and need (grocery, banks, work, shopping), low maintenance (no yard care) and a sense of community through the amenities such as fitness center, swimming pools, tennis courts, and clubhouse.  The negatives to buying a condo is that I don't think they appreciate as quickly in value as single family homes do.  One reason for this might be the fact that at any given time, there may be units just like yours on the market, so there is more competition to keep the price lower.  If I were looking at buying a condo, I would pay careful attention to how the common areas are kept, whether you receive parking or a garage with your unit, what the HOA fees will be each month, whether any extra HOA assessments are coming due, and the ratio of owners to renters in your development.    Good luck!!!
1057505
Lending activity would decrease forclosures would increase and vultures who have money would pick up the forclosed property's at a dicounted price.Entirely too many people take on to much debt all the while trying to keep up with the jonse's.people need to stop worrying about what other people think of them because noone is impressed with your big house and fancy cars that you financed to get them because you could not afford to buy them. Limit debt to 20 percent of your take home pay and you will be on your way to long term financial security.
572120
It is silly to let a house go into foreclosure unless you've exhausted your other options.\n\nIf the house is worth at least the amount of the loan, you should put it up for sale immediately.
897244
We are in a buyer's market for now.  Foreclosures are up and will continue upward for at least another year.  This is due to the large amount of speculation and creative financing.  The creative financing people once thought was a great idea is now biting them in the behind.  If you are a buyer, you are in the drivers seat.  Look at the houses for sale and carefully analyze recent sales.  If the properties are in danger of foreclosure (you can find out by checking with the county court house public records) or has been on the market a long time, you can get lucky by making a low ball offer. \n\nDetermine the fair value based on recent sales and offer 20% less to the homeowner that needs to get out.  Now is the time for buyers to wheel and deal.
494380
There really is not a good website.  Go to your local court house and they should have a monthy print out of foreclosed homes and tax sale homes.  A bank can't not foreclose on a house untill they make it public in the local court house.
255677
Probably the condition of the homes. We looked at many foreclosed, or pre-foreclosure homes when we were buying. The foreclosure process takes so long generally that the houses have been vacant for a long time and many that we saw were trashed on the inside too. Also, sometimes you will have more difficulty finding a mortgage to purchase one of these homes as they are generally sold "as is".