Comments on: How to Buy a Foreclosed Home http://frugaldad.com/2010/05/24/how-to-buy-a-foreclosed-home/ Promotional Codes, Coupons & Deals + Money Saving Insights Sat, 26 May 2012 00:58:25 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Susan http://frugaldad.com/2010/05/24/how-to-buy-a-foreclosed-home/#comment-70631 Susan Thu, 12 Jan 2012 16:19:11 +0000 http://frugaldad.com/?p=5471#comment-70631 ok, total green horn here! (my ignorance is making me blush) Condo unit in my complex is in foreclosure. surrounding units are going between 82000-92000. this unit is advertised by the bank at 24,700 (!?) what's my next step? ok, total green horn here! (my ignorance is making me blush)
Condo unit in my complex is in foreclosure. surrounding units are going between 82000-92000. this unit is advertised by the bank at 24,700 (!?) what’s my next step?

]]> By: Yvonne Russell http://frugaldad.com/2010/05/24/how-to-buy-a-foreclosed-home/#comment-44121 Yvonne Russell Wed, 11 Aug 2010 16:46:32 +0000 http://frugaldad.com/?p=5471#comment-44121 Congress, in an effort to stabilize FHA has passed HR 5981 which Obama is expected to sign. This bill, “General and Special Risk Insurance Funds Availability Act”, is intended to allow FHA to increase its annual premiums for single family homes. What does this mean for home buyers today? It means it will cost you significantly more to finance your home if you get an FHA loan after 9/7/10. In previous posts I warned that FHA was going to make serious changes to its programs to remain solvent. I actually expected these changes in the first quarter of the year but they waited until the 3rd. This will permit FHA to increase its annual premiums from .55 percent to 1.55%. The rub is that the bill purports to save you money up front but boy do you get hit in the annual premium ...read more. Congress, in an effort to stabilize FHA has passed HR 5981 which Obama is expected to sign. This bill, “General and Special Risk Insurance Funds Availability Act”, is intended to allow FHA to increase its annual premiums for single family homes. What does this mean for home buyers today? It means it will cost you significantly more to finance your home if you get an FHA loan after 9/7/10. In previous posts I warned that FHA was going to make serious changes to its programs to remain solvent. I actually expected these changes in the first quarter of the year but they waited until the 3rd. This will permit FHA to increase its annual premiums from .55 percent to 1.55%. The rub is that the bill purports to save you money up front but boy do you get hit in the annual premium …read more.

]]> By: Friday Scoop on Credit Karma & Housing Market News | Credit Karma Blog http://frugaldad.com/2010/05/24/how-to-buy-a-foreclosed-home/#comment-42188 Friday Scoop on Credit Karma & Housing Market News | Credit Karma Blog Sat, 05 Jun 2010 00:27:42 +0000 http://frugaldad.com/?p=5471#comment-42188 [...] In the market for a new home? Check out affordable homes with FrugalDad’s how to buy a foreclosed home. [...] [...] In the market for a new home? Check out affordable homes with FrugalDad’s how to buy a foreclosed home. [...]

]]> By: Summer is Really Here! http://frugaldad.com/2010/05/24/how-to-buy-a-foreclosed-home/#comment-41863 Summer is Really Here! Sun, 30 May 2010 13:57:53 +0000 http://frugaldad.com/?p=5471#comment-41863 [...] How to Buy a Foreclosed Home [...] [...] How to Buy a Foreclosed Home [...]

]]> By: Roundup and Link Love: One Million Visitors Edition http://frugaldad.com/2010/05/24/how-to-buy-a-foreclosed-home/#comment-41790 Roundup and Link Love: One Million Visitors Edition Fri, 28 May 2010 11:31:44 +0000 http://frugaldad.com/?p=5471#comment-41790 [...] Frugal Dad gives some great information on How to Buy a Foreclosed Home [...] [...] Frugal Dad gives some great information on How to Buy a Foreclosed Home [...]

]]> By: Aury (Thunderdrake) http://frugaldad.com/2010/05/24/how-to-buy-a-foreclosed-home/#comment-41769 Aury (Thunderdrake) Thu, 27 May 2010 21:51:14 +0000 http://frugaldad.com/?p=5471#comment-41769 Oh. Gah. Disregard this comment (Or delete it, preferably.) It was meant for... http://frugaldad.com/2010/05/21/what-should-i-do-with-an-extra-paycheck/ Whoopsy. #^_^# Oh. Gah. Disregard this comment (Or delete it, preferably.) It was meant for… http://frugaldad.com/2010/05/21/what-should-i-do-with-an-extra-paycheck/

Whoopsy. #^_^#

]]> By: Aury (Thunderdrake) http://frugaldad.com/2010/05/24/how-to-buy-a-foreclosed-home/#comment-41768 Aury (Thunderdrake) Thu, 27 May 2010 21:49:51 +0000 http://frugaldad.com/?p=5471#comment-41768 My first instinct would be to immediately invest it. if I can't vest my money into my TFSA, I'd go buy some silver. Hah. My first instinct would be to immediately invest it. if I can’t vest my money into my TFSA, I’d go buy some silver. Hah.

]]> By: finallygettingtoeven.com http://frugaldad.com/2010/05/24/how-to-buy-a-foreclosed-home/#comment-41760 finallygettingtoeven.com Thu, 27 May 2010 15:38:25 +0000 http://frugaldad.com/?p=5471#comment-41760 Being a real estate investor some of the homes we own are homes going through foreclosure purchased at sheriff auction on the courthouse steps, 10 at last count and we are activel perusing the sheriff auctions for more good deals. If you have the stomach to purchase in this manner good deals are still available. We are seeing homes go for .40 on the dollar. Not all mind you, some are being offered over and above what the seller even owes, banks are not waiting to collect their money from agents after the sale they are hoping the buyer at the auction sale will help them make a profit. So you need to be diligent and do your homework. Mortgages are of public record, and while it makes you really no difference what the previous owner owed it is interesting to see what games the banks are playing. We have purchased homes that appraised for $80,000, the owner owed $50,000 and we paid $30,000 as an example. All homes that are going to auction have to by law be advertised in the local paper of the county they reside in 3 times before the sale. You can also go to your county courthouse and they will have homes on the board and scheduled dates of sale. Be careful what you buy. It is 'as-is' and most homes do not allow for inspections before the sale. We made a deal with the county sheriff to turn a 'blind eye' while we 'broke' into these homes (hey-no damage, i promise, well no more damage than what was already left behind by disgruntled homeowners) and having this extra knowledge did cause us to walk away from some homes that otherwise looked manageable from the street. By doing this we pretty know how much work a home is going to require and have put numbers to it. But keep in mind you can't see everything and there could be hidden problems lying in wait. We have a real estate broker that we turn to who helps us in crunching numbers and running comparables so that when we go to the sale we are well armed with necessary information. While we do not 'flip' our homes and only rent, one day we will want to sell and get out of this business so we still have to buy for the right price in the right locations. You must also pay for the home immediately in cash, in our county within 24 hrs. So make sure you have the funds readily available and ready to dispense if necessary. One other very important consideration is liens. While mortgages are wiped out at the sale liens can become an issue. Most will be wiped as the 1st mortgage takes priority over all else the one to watch is IRS liens, taxes unpaid. I am not speaking of property taxes (which also could be due and payable so check that one out too), the liens i refer to are personal taxes that have not been paid. The liens can be attached to the home and if you purchase it, you purchase that lien also. So once again, CHECK public records. (and we re-check the morning of the sale as you never know when one can slip in at the last minute). OR: you could just make it easy on yourself and wait til the bank gets the home back and purchase through a qualified real estate agent. At least then you will be protected from any unforeseen problems that arise (and there usually are plenty, trust me).... Being a real estate investor some of the homes we own are homes going through foreclosure purchased at sheriff auction on the courthouse steps, 10 at last count and we are activel perusing the sheriff auctions for more good deals. If you have the stomach to purchase in this manner good deals are still available. We are seeing homes go for .40 on the dollar. Not all mind you, some are being offered over and above what the seller even owes, banks are not waiting to collect their money from agents after the sale they are hoping the buyer at the auction sale will help them make a profit. So you need to be diligent and do your homework. Mortgages are of public record, and while it makes you really no difference what the previous owner owed it is interesting to see what games the banks are playing. We have purchased homes that appraised for $80,000, the owner owed $50,000 and we paid $30,000 as an example.

All homes that are going to auction have to by law be advertised in the local paper of the county they reside in 3 times before the sale. You can also go to your county courthouse and they will have homes on the board and scheduled dates of sale.

Be careful what you buy. It is ‘as-is’ and most homes do not allow for inspections before the sale. We made a deal with the county sheriff to turn a ‘blind eye’ while we ‘broke’ into these homes (hey-no damage, i promise, well no more damage than what was already left behind by disgruntled homeowners) and having this extra knowledge did cause us to walk away from some homes that otherwise looked manageable from the street. By doing this we pretty know how much work a home is going to require and have put numbers to it. But keep in mind you can’t see everything and there could be hidden problems lying in wait. We have a real estate broker that we turn to who helps us in crunching numbers and running comparables so that when we go to the sale we are well armed with necessary information. While we do not ‘flip’ our homes and only rent, one day we will want to sell and get out of this business so we still have to buy for the right price in the right locations.

You must also pay for the home immediately in cash, in our county within 24 hrs. So make sure you have the funds readily available and ready to dispense if necessary.

One other very important consideration is liens. While mortgages are wiped out at the sale liens can become an issue. Most will be wiped as the 1st mortgage takes priority over all else the one to watch is IRS liens, taxes unpaid. I am not speaking of property taxes (which also could be due and payable so check that one out too), the liens i refer to are personal taxes that have not been paid. The liens can be attached to the home and if you purchase it, you purchase that lien also. So once again, CHECK public records. (and we re-check the morning of the sale as you never know when one can slip in at the last minute).

OR: you could just make it easy on yourself and wait til the bank gets the home back and purchase through a qualified real estate agent. At least then you will be protected from any unforeseen problems that arise (and there usually are plenty, trust me)….

]]> By: Getting Ready for Vacation Home Shopping http://frugaldad.com/2010/05/24/how-to-buy-a-foreclosed-home/#comment-41754 Getting Ready for Vacation Home Shopping Thu, 27 May 2010 13:31:23 +0000 http://frugaldad.com/?p=5471#comment-41754 [...] How to Buy a Foreclosed Home [...] [...] How to Buy a Foreclosed Home [...]

]]> By: JOBs money free by 30 http://frugaldad.com/2010/05/24/how-to-buy-a-foreclosed-home/#comment-41707 JOBs money free by 30 Wed, 26 May 2010 18:07:53 +0000 http://frugaldad.com/?p=5471#comment-41707 My brother bought a foreclosed also, he seems to have had a huge headache as well. But in the end he saved a lot of money. As far as the repairs go, I know he replaced the flooring, roof, electrical, and I think plumbing.... But he also redid the layout of the building and built a huge fence. Obviously some needed, some not. Where I live, I've been looking heavily at foreclosures however, my downpayment and overall general savings still need to be increased before I buy any home. Not to mention, I'd like to have some of the debt paid down too. Sadly by the time I'm probably ready for a home, especially foreclosure, the market will likely be very different. My brother bought a foreclosed also, he seems to have had a huge headache as well. But in the end he saved a lot of money. As far as the repairs go, I know he replaced the flooring, roof, electrical, and I think plumbing…. But he also redid the layout of the building and built a huge fence. Obviously some needed, some not. Where I live, I’ve been looking heavily at foreclosures however, my downpayment and overall general savings still need to be increased before I buy any home. Not to mention, I’d like to have some of the debt paid down too. Sadly by the time I’m probably ready for a home, especially foreclosure, the market will likely be very different.

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