Foreclosed homes..

there is usaully a bidding war w/ foreclosed homes of investors that have liquid cash. you have to remember that the owners are being misplaced against their will, so they are not very accomodating in re: moving. the property is bought sight unseen and very often the sheriff has to evict the owners.

IMO, it is NOT worth the aggravation.

You guys just scared me. Our friend a contractor buys foreclosed homes and fixes them, he never alluded to this..thats so sad

I bought a foreclosed home - the previous owners had been out for months - so I wasn't even aware that eviction was an issue. I happended to stumble on my house - because it was in my very low price range 5 years ago (pre meeting FI). It was pretty beat up, and many people cautioned me not to buy it, but here I am today with about $300K in equity, because my purchase price was so low. And yes, it was a crazy bidding war - but the bank that actually owned the house just declared that as of a specific date, the highest price takes it - - - luckily I was the highest price.

I don't have much experience with actually seeking out foreclosed homes, but I understand that it's extremely competitive - especially if you're looking on LI.

DH and I bought 'Home Buying for Dummies' and there was a section on foreclosed homes. The book said that often people do terrible things like pour cement down the drains, etc. The 'If I can't have it no one else will' mentality. I got the impression that often you will have to spend a lot to fix a house after things like that happen.

Did you say you have a friend who buys and fixes foreclosures? Maybe he can help you find one. It's not impossible, but it's challenging! Good luck.

We did not purchase a foreclosed home, but our home looked like it was beat to He L L!
We gutted the entire home, put on an addition, and it's now our dream house.

I don't know if this info helps you, but just wanted you to know that even homes that are beat up badly can come out amazing.

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Posted by chris605

I did and I heard after you purchase it you have to evict the old owner... I dont know how true that is??

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Yes. If the foreclosed owner, their relatives, their tenants or anyone else are still in the building, you must evict them. The property is sold as is. Also title companies don't want to insure the property if it's occupied. This is because the occupants might try to fight the eviction through challenging the foreclosure proceeding. The title company does not want to get involved in the litigation or in defending the claim.

I have also heard that the occupants sometimes trash the house. (Put cement down drains and 'fun' stuff like that.)

However, if the building is vacant and you are handy, you can get a good deal. It just really depends on the property.

ETS: If you buy a house at a foreclosure auction, you have to be prepared to close within 30 days. You can get an extension, but it has to be because it's the bank/seller's fault that you can't close. (Like the title cannot be cleared within that time. They do have to deliver clear title.)