Your Questions About Foreclosures | foreclosureorder.com

Your Questions About Foreclosures

Your Questions About Foreclosures

Ruth asks…

How would i go about getting an list of homes foreclosure home for sale. Also do you think?

a foreclosed home would be the best for an first time buyer?

Your Questions About Foreclosures

The Expert answers:

Just go to http://www.realestateofficestore.com and use the free tools. RealtyTrac and foreclosure.com

Your Questions About Foreclosures

Sandy asks…

What are some good websites to search for foreclosure homes for sale?

Your Questions About Foreclosures

The Expert answers:

None of them because most aren’t up to date and the information provided doesn’t reflect what may actually going on. I understand your need to search on line, but use it only as a partial tool, one in which you consider features and amenities. But don’t take the value information for verbatim. It’s generally old and the property could have been sold by now.

When and if you qualify, and you need to talk to lenders first, to see what you can afford. Once you’re pre qualified, find a Realtor who has experience in selling these types of properties. For now I would shy away from “short sales”, lenders take too much time making a decision. Fannie Mae and Freddie Mac properties are a good buy and they generally offer closing costs or new appliances. You can search their websites, they are up to date. Good Luck!

Your Questions About Foreclosures

Mary asks…

is anyone know which site is the best site to search for tax and pre-foreclosure homes sale. Thank you?

Your Questions About Foreclosures

The Expert answers:

Http://www.realtytrac.com/

Your Questions About Foreclosures

Paul asks…

Does anyone have foreclosure homes for sale in Maryland, DC, or Virginia?

I would like to purchase a home in one of these areas. Thank you.

Your Questions About Foreclosures

The Expert answers:

It sounds like you have narrowed your search down. That is always a good sign. It means you know what you want. Why don’t you try a site like GovernmentAuctions.org You can register with them and see tons of foreclosure listings from throughout the country. They have a huge database of houses just waiting to be bought at auction prices.

Your Questions About Foreclosures

Susan asks…

Are foreclosure homes for sale too good to be true?

Your Questions About Foreclosures

The Expert answers:

Here’s the way foreclosures work.

If a home is foreclosed because the owner defaulted on their mortgage, the property goes up for auction at the county courthouse to the highest bidder. And, the bank itself can send an agent to bid on the house for them. That way, if the bidding is too low for the bank to accept that much of a loss, they can buy the home themselves and put it on the open market through a realtor. And, this may be below comparable market value, because they want to get the property off their books as soon as possible.

Also keep in mind that you’ll be competing at the auction with professional property investors who will bid up the best properties. You’ll also be competing with these investors for the properties on the open market. And, a lot of these investors have the ability to make a cash offer. The banks prefer these to a buyer who has to finance the purchase, because there’s no way for the sale to fall out of escrow due to funding problems. And, banks will often accept a lower cash offer than a financed one for this reason.

If it’s a tax lien foreclosure, this means that the property is owned outright (no mortgage on it), but the owner stopped paying property taxes. These are the ones that the get-rich-quick programs on the late night infomercials brag about being able to buy for “pennies on the dollar.” But, you have to ask yourself, why did someone stop paying taxes? Many of these homes are so dilapidated that the owner figured it was better to just walk away from the property. Or, there may be some code violation, the neighborhood is full of crack houses … Whatever. So, it may be cheap to buy. But, it would cost a fortune and be a money pit to fix up, or no one would buy it regardless of the condition it’s in. And, you’re stuck with it unless you can find some sucker to take it off your hands.

Another thing to consider with a foreclosure of any kind is that the seller (the bank or county) doesn’t have to submit a transfer disclosure statement (TDS) when selling the property. The TDS is an affidavit that’s required to be submitted by the seller of any regular (non-foreclosure) transaction that states the condition of the property – warts and all – to the best of the seller’s knowledge. And, if there’s some discrepancy that pops up later, but that’s not on the TDS, the buyer can come back and sue the seller and his agent.

With a foreclosure, the buyer has full responsibility to do whatever inspections it takes to satisfy him of the actual condition of the property, including any code violations, existing liens, or anything that might be an issue that has to be addressed. And, once the buyer owns the house, any and all discrepancies are the buyer’s sole responsibility to correct. If you bought a foreclosure and the day escrow closes you open the door to the house, and it crumples to the ground like a pile of match sticks, guess what? It’s your house now and you get to fix it. And, sometimes former owners actually trash or damage the house on purpose to “get back at the bank” for foreclosing on them (like pouring concrete down toilet drains).

The bottom line is that someone who is not very skilled at evaluating properties or even just not very experienced at purchasing one should avoid foreclosures. The good ones will likely be snapped up by the professionals (flippers and investors), and the bad ones that are left over will just be a nightmare for the buyer.

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Your Questions About Foreclosures
Your Questions About Foreclosures
Your Questions About Foreclosures
Your Questions About Foreclosures
Your Questions About Foreclosures

Your Questions About Foreclosures

Your Questions About Foreclosures