XOXO

beachbride04 Posted: Jan 24, 2003 02:53 PM

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Lisa Rose Posted: Jan 24, 2003 03:29 PM

Re: Foreclosed Homes

there are some forclosed houses out there that are in good shape but most are in really bad shape.

We had looked at a house that the realtor told us they were about 3 months from forclosure and the house was a wreak. Just becareful if you decide to buy one. I have heard stories of people buy forclosures and the former owners coming back and putting sign on the front lawn and basically giving the new owners hell for it.

Good Luck!

februarybride Posted: Jan 24, 2003 04:29 PM

Re: Foreclosed Homes

I've heard some crazy stories about foreclosures.... someone told me that they knew someone who bought a foreclosure and the old homeowners had poured cement down the toilets.
Who knows if that's true but, most likely homeowners who have had their homes foreclosed are probably not the happiest folks!

balilove Posted: Jan 24, 2003 05:18 PM

Re: Foreclosed Homes

I have a girlfriend that bought one in St. James. The place was a mess as far as walls were concerned it looked like someone went on a kicking spree one night. Her father is a contractor so he and his guys redid the inside of the house. She sold it for about 3x the amount she paid for it, with so little money invested in the foreclosure.

Fran M Posted: Jan 24, 2003 05:33 PM

Re: Foreclosed Homes

I know two people who went the foreclosure route. My BIL bought one and did a ton of work on it - sold it and used his profits to get into a better house. It worked for him because he did 95% of the work himself. A friend of mine bought one and is cursing the day she did because everytime she starts to fix something she finds that it is 10 x worse than expected. There is just tons of hidden damage in the house. Thats not to say you cant get lucky with forecloseure especially if you are handy.

sonia Posted: Jan 24, 2003 05:33 PM

Re: Foreclosed Homes

i think the whole purpose of buying a foreclosed home is being able to fix it up like new and wind up paying barely any money. obvioulsy the houses arent going to be in great shape when you first go see them.

we're definitely considering this ... FH is always lookin at foreclosed home listings .. but we'll see.

Isla Engineering Posted: Jan 24, 2003 06:31 PM

Re: Foreclosed Homes

The True Cost of a house is its Purchase Price plus the Cost of Repairs.

You can use this formula to determine if it's a good deal (whether it's a foreclosure or not).

Good luck!
Danny Isla, P.E.

Isla Engineering

beachbride04 Posted: Jan 24, 2003 09:21 PM

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Teri Posted: Jan 24, 2003 09:34 PM

Re: Foreclosed Homes

I think the biggest thing with these types of houses is being able to do the work yourself, or know someone in the business that you can trust and get a good deal with.

My DH is so NOT a handyman - he can't even hammer a nail into a wall, so this is out of the question for us.

If you have the time, money and patience, I'm sure you can find some great deals.

Edited to say: I had no idea you can't see the inside of the house before you bid!

Buttafli1277 Posted: Jan 25, 2003 12:11 AM

Re: Foreclosed Homes

FH and I were looking into foreclosures at one point. There are many negatives about bidding on a foreclosure. Most of the time they are not in the best areas, you can't go inside the house to see the damage before bidding, most of the time there is alot of damage cuz the owners know they are going to lose their home and don't really care how it looks. They just destroy it. I also feel that by the time you spend the $ to fix the house, you could have bought a house that was for sale in better shape. If you have handy people, then it might not be too bad. FH and I just decided to stay away from the foreclosures, and we just went to contract on a house that was for sale in a neighborhood we both like.

beachbride04 Posted: Jan 25, 2003 09:48 AM

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dkga1026 Posted: Jan 25, 2003 12:53 PM

Re: Foreclosed Homes

Beachbride that is definitely a good idea if you have someone handy to fix the house and resell it. My DH owns his own construction company so this is a no-brainer for us. The only problem is that everytime we look at listings, they are always in not-so-good neighborhoods where the resale value isn't worth it. How do you find listings in the better areas?

Claud2001 Posted: Jan 25, 2003 01:36 PM

Re: Foreclosed Homes

It is extremely rare that you can find a foreclosure in a good area. They are usually borderline neighborhoods at best. However, if you can do the work yourself to fix the house, than you might be able to find a good deal, if you don't mind sacrificing location and school district.

Or, you can buy a foreclosed home that is already fixed...a lot of contractors are doing this A LOT now b/c the market is so crazy...just churning through houses and dumping them as quickly as possible. A friend of mine just bought a foreclosure, and all the work has already been done for them, so they can move right in.

A few years ago, my cousin bought a foreclosure and had to gut the house are re-do everything. It took them awhile, but they did it all themselves to save some money. It all depends on what you can afford to do.

Buying a foreclosure for $300K or more and then still putting $75-$100K of work and materials into the house is not a feasible option for everyone.

cw0904 Posted: Jan 25, 2003 02:48 PM

Re: Foreclosed Homes

FH's cousin is a lawyer that closes foreclosed homes for his friend as a side job from his full-time one. The friend buys these homes and fixes them up (he is a really good handyman) then sells them at almost double the price.
We will def. be looking into this b/c both of these people have had experience with these homes. I know the friend has found homes from the most richest neighborhoods to the neglected areas.

WishCandy Posted: Jan 27, 2003 08:56 AM

Re: Foreclosed Homes

FI & I would luv to score a Foreclosure, as long as it's in decent shape.

Becky Posted: Jan 27, 2003 11:11 AM

Re: Foreclosed Homes

I think there are many good deals out there among foreclosed homes. But you want to try to find a 'people problem' home. I do domestic law and have seen many, many good homes go into foreclosure becuase one spouse refuses to make payments on the house as a final FU to the soon to be ex-spouse. You would think that people would not want to shoot themselves in the foot like that, but a nasty divorce will do it. Plus, if one person already had bad credit, they don't feel like they have anything to lose.

I have also worked with some clients to prevent forclosure. A lot of people don't realize that when they have suffered a temporary career set back, the loan companies offer programs wit give you a few months to get back on your feet. Many good homes go to foreclosure becuase people don't always know their options.

I agree that the majority of homes are in bad shape, but there are definitely good deals to be found. It sounds like beachbride found one!