Want to Purchase A Home? Tips for Couples or Singles

[SummerChild]

Dang Soror, you've done everything in the real estate market! I want to be like you when I grow up.
I often see foreclosures listed but the ad often states something that made me think that you could not inspect the property before you bid. A realtor was telling me that he gets listings of pre-foreclosure properties so I'll follow-up with that. Did you find that it was much more expensive (like you had to pay out of pocket some huge % or could you just come with proof of loan funds)? I been reading a few articles and read a short book.
So it sounds like it was not all that risky at all - in your experience b/c you were able to get an inspection ahead of time.

SC

Originally Posted by Conskeeted7

I've bought 2 foreclosures. I, personally, did not find the process to be any different than conventional real estate. Of course, you want to have an inspection to determine if you'll move forward with the property. I never had any trouble getting an inspection. However, you may have a hard time getting the bank to fix anything that you find. So, be prepared to handle that cost on your own. For me, it was worth it to fix things on my own because I bought the houses at 50% of market value and there were no structural issues, strictly cosmetic.

You can find information on foreclosures in your county office (if it's being foreclosed because of taxes) or some realtors work closely with them as well. We actually found ours by driving around and seeing houses that looked 'under the weather.'

[SummerChild]

Here's further info from my agent re foreclosures.

You get an inspection, as Soror Conskeeted7 stated, and have your contract contingent on the results of that - as with any other house that you make an offer on. Also, the loan for obtaining a foreclosure is the same as for any other property.

Here are two links for pages with listings of foreclosures.
http://www.all-foreclosure.com/reolist.htm
http://www.mortgagecontent.net/reoSe.../reoSearch.jsp

Originally Posted by SummerChild

Dang Soror, you've done everything in the real estate market! I want to be like you when I grow up.
I often see foreclosures listed but the ad often states something that made me think that you could not inspect the property before you bid. A realtor was telling me that he gets listings of pre-foreclosure properties so I'll follow-up with that. Did you find that it was much more expensive (like you had to pay out of pocket some huge % or could you just come with proof of loan funds)? I been reading a few articles and read a short book.
So it sounds like it was not all that risky at all - in your experience b/c you were able to get an inspection ahead of time.

SC

[Conskeeted7]

When I bought foreclosures, I used conventional financing, so I didn't have to come up with anything out of the ordinary.

The only issue that you might find if a property is in a great deal of disrepair is that you may not be able to get insurance coverage for it. This would impede the closing process, since conventional loans require home insurance at closing. With our first foreclosure, although the repairs were cosmetic, the insurance company still wanted us to repair them. They allowed us to start a policy with the contingency that the repairs would be made within 30 days. We actually didn't have the repairs complete, but were able to show receipts from vendors to complete the work and that was enough for them.

[rho4life]

I bought my place in '05. My best advice is to sit down and make an HONEST list of what you have to have and what you want to have. IE, it has to be in a certain zip code, and it would be nice if it had granite counters. Once I came to terms with the fact that my first place was not going to be my dream home, but a step towards my ultimate goal it was a lot easier.

Also, go to some areas you're thinking about living for open houses, and then go back during times of day or night when you're usually coming home. I eliminated one area because once the sun went down the character of the area changed DRASTICALLY and I didn't feel safe.

Good Luck!

[SummerChild]

Great book for those thinking of purchasing a condo, co-op or townhouse -
"Tips and Traps When Buying a Condo, Co-op, or Townhouse" by Robert Irwin.

SC