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RobinG · Joined: 14 Apr 2005 Posts: 6

I have seen homes that have been foreclosed on that are really inexpensive. When I asked my real estate agent about them. She can't find a listing. From what I've seen on the news. They hold public auctions on the steps of the assessors buliding. Then I was told that you have to place some kind of deposit to be a part of the auction it self. A fee that is non-refundable. I'm looking for a house to live in. Not an investment. I'm NOT interested in flipping. Please help need info.Sacramento Calif

Roro · Joined: 19 Apr 2005 Posts: 2

you should go take a look at the house.

I_Love_McRedneck5424 · Joined: 25 Apr 2005 Posts: 2

I'm not sure about the deposit, I think that may vary by state. I know you can phone in bids if you can't physically be there. They usually list the date and time of the auction.That price they list is just the starting bid, not necessarily what they'll take for the house. They can have a reserve price that needs to be met in order to sell. Sometimes those houses actually sell for more than the appriased value, it's quite common actually.Do a lot of research and be prepared for a long road ahead of you of you're looking to buy by auction.You might want to consider a short sale instead. That's basically when the house is a pre-foreclosure and they're trying to aavoid a foreclosure happening.I think most people accept somewhere between 10 and 12% below the asking price on short sales. You'l lalso get more information from your realtor on these. Again, you've got to do quite a bit of research to make sure you're getting the bargain you're looking for. Either way, you'll be helping out someone who is getting ready to lose their house and have their credit destroyed.

LeoF9893 · Joined: 01 May 2005 Posts: 4

You are talking about trustee sales at the court house. The sales are all CASH and opening bid is just the start sometimes opening bid is higher than market value due to back payment, late fees and trustee fees.

Othniel · Joined: 06 May 2005 Posts: 3

There are a lot of foreclosed properties on the market. If your agent does not know of any then look for a different agent. I see them every day in our local MLS. You DON'T want to buy a property on the court house steps. You are not experienced enough and can get into some very difficult issues.Once a property is listed as a foreclosure then you can buy it just like any other property. However, the banks are only interested in the bottom line. The sale is usually "As Is" which means the bank will not make any repairs (but a good Realtor will help you negotiate repairs and or discounts).Foreclosures are usually houses that have not had good maintenance, often lack appliances, if they have been vacant for long can have other more serious problems. Always get a home inspection within the contract period and back out if the problems are significant.Unless you are handy, have some extra money and time I don't recommend a foreclosure. Get prequalified with a lender and have your REALTOR look for a house in that price range. You will get a house in better condition.All that I said above pertains to bank foreclosures. HUD is a bidding process but if you intend to live in the property you get first consideration. They used to have special programs for police officers and school teachers.

scottsnyderhomes · Joined: 12 May 2005 Posts: 5

Just because the house is being foreclosed does not ultimately make it a "good deal". You may want to have your agent seek "short sales". I suggest this because you state that you want to reside in the home after you have purchased it. A home that has been foreclosed on usually needs a lot of work, more than just cosmetic. This is because it takes a long period of time before the lender is able to secure the deed before it can be sold. Here is a logical time line: The occupant cannot afford the mortgage payment/property tax/insurance, etc. They cannot afford to make any necessary repairs. The lender starts foreclosure proceedings. The sheriff evicts the occupants. The property sits vacant (if there was water intrusion, it will get worse). The lender secures the deed and is now able to auction or hire a broker that specializes in selling "corporate owned" properties. Additionally, the purchaser will obtain a Limited or Special Warranty deed instead of a “more secure” General Warranty deed."Short sales" are when the occupant is in financial trouble yet the lender is willing to look at offers and possibly take less than what is owed on the property to avoid foreclosure proceedings. The downside is that the lender may take awhile to decide if they will accept the purchaser's offer. The upside is the occupants are not so far behind and usually maintained the property until they ran into the financial hardship. Auctions usually require a deposit and the full amount of the winning bid. Before the auction you will need to register and have the opportunity to tour the property with your inspector and contractor.You should hire a Realtor® and a real estate attorney, experienced in these types of real estate transactions, to protect your interests.

Mike3619 · Joined: 18 May 2005 Posts: 6

Your agent should be able to find them on MLS.DO NOT buy on the courthouse steps... you can get screwed. You dont know what you are getting. There was a recent case on the news of someone spending 2 million on a 3 million dollar house on the courthouse steps... great deal, except the entire house was full of cat crap and urine, hardwood floors were bowed and ruined, the whole house had to be completely gutted, at a cost of 2 million... not a good deal.And investor can take a hit it if happens, but as your primary residence, you cant.If you buy a foreclosure house, get it post-foreclosure so you can actually SEE the house, and make an offer.... Also, builders are giving some really awesome deals right now, as they are desperate.... be sure to check them out....