Should I RUN LIKE H#LL??

Anonymous · ‎08-11-2010

I put an offer in on a FNMA foreclosure in what is known as a nice area (surrounded by other nice homes) which was accepted earlier this week. I went ahead and made an appointment for the inspection, and when I called the realtor today to give him the appointment time he informed me that overnight someone had destroyed the brand new AC unit to remove the copper. This is the second time that this has happened since the bank took this house back, as they had replaced the unit before they even listed the home. The realtor says that he will be FILING A POLICE REPORT, and they will replace the unit again and put a "protective cage" over it as well and install a motion detector light on that side of the house. He doesn't know how long it will take, but this will definitely delay the entire process. I am early enough in the process where I haven't paid any earnest money or even signed the binding contract since they just verbally accepted my offer. Is this a typical scenario to deal with in a foreclosure situation? The previous owners have been out of the house for a few months,but t I'm starting to feel uncomfortable about this whole situation due to the fact that I travel a lot on business and need peace of mind that while I am away that nothing suspicious or malicious is happening at my house while I'm gone.

Should I run like you know what, and find another house without so much DRAMA???

Anonymous · ‎08-11-2010

I would not fixate on it. These things happen when people know that homes are abandoned and left without any protection. It is likely the same people who did it the 1st time that came back the 2nd time. It is unlikely to happen once they put protections in place, and it is even less likely to happen once you move in and signs of residence are apparent. I would invest in a good security system and such if I was gone that much if it were me, as well as making very sure of the terms of your home owners regarding theft/loss since it is always a bit higher chance when you travel alot.

Anonymous · ‎08-11-2010

He also indicatied that the neighbors have taken an "unnatural" interest in the property and even talked about making an offer on it themselves. The only reason I can see them doing this is for the purpose of flipping since the house is identical to theirs but a different color and in worse shape since its been neglected for a few months. I don't understand why he's become so cozy with them even to the point of telling them that someone else has made an offer and how much it was, to which they replied WE DON'T WANT TO PAY THAT MUCH!! He says they probably think they can get it for a steal then flip it. But unfortunately that same thing happened with another foreclosure that I looked at last year,where someone bought it in a competion situation just to flip it, but couldn't sell fast enough before they lost it to foreclosure themselves a few months ago - because they also still had their primary residence and couldn't afford two mortgages. It is now back on the market and in a gated neighborhood (where pillaging is more difficult), so maybe I'll go for it again instead of this one.

The more I think about it, the more I am getting a bad vibe and think I need to WALK AWAY or..... RUN LIKE H#LL!!

clipperskipper · ‎08-12-2010

Sounds like the Woodlands in Florida, just curious as to why the neihbors would now be taking a particular interest as flipping is pretty much

out on these REO's.

Anonymous · ‎08-12-2010

It is in Florida, so you are right!! Also, the rules of this special FNMA program is that they are looking for owners who will occupy the property as their primary residence themselves not buy it to flip or rent out others. And you are also right that the days of buying and flipping are pretty much over for the most part (unless the houses are under $100k) which these ARE NOT!!!

Anonymous · ‎08-13-2010

well the days of buying and flipping are not really out by any means, just the days of easy financing so every person and their dog was trying to do so. If youhave cash you can make a killing right now flipping houses in alot of areas in the country. The deal is though that financing for flippers is hard to come by and alot of the reo's and short sales do not move fast enough in the sale process. So the flippers put out 20 cash offers for really cheap hoping to snag one of them at a good price. Not the same as before when the market was going up so fast that people were flipping based on equity, not by buying cheap properties and fixing them for resale. Again, it is now back to the true professional flippers.

Anonymous · ‎08-13-2010

That's precisely what I mean. The foreclosed homes I am looking at are in the $400- 500k range which for the most part aren't going to be attracting too many "cash buyers" or competing bidders, but will require financing (which is hard to come by these days). I am just fortunate that I have high fico scores, no debt, and a high income, and all I want is my DREAM HOME to live in!!!

BungalowMo · ‎08-14-2010

@Anonymous wrote:
That's precisely what I mean. The foreclosed homes I am looking at are in the $400- 500k range which for the most part aren't going to be attracting too many "cash buyers" or competing bidders, but will require financing (which is hard to come by these days). I am just fortunate that I have high fico scores, no debt, and a high income, and all I want is my DREAM HOME to live in!!!

Just remember...your "dream" home is next to nosy neighbors who will obviously know that you're out of town...a lot! If it were me...I'd be thinking long & hard about that place...weiging out your options carefully. Wherever you buy, you're likely to be there a very long time.

BK 7 discharge 06.24.2020 No Fico score at all.

Anonymous · ‎08-14-2010

Just remember...your "dream" home is next to nosy neighbors who will obviously know that you're out of town...a lot! If it were me...I'd be thinking long & hard about that place...weiging out your options carefully. Wherever you buy, you're likely to be there a very long time

I've thought about it for the past few days, and have decided to pass on this house. I'm not in a hurry, so I can wait for something better to come along in the next few months.

BungalowMo · ‎08-14-2010

@Anonymous wrote:
Just remember...your "dream" home is next to nosy neighbors who will obviously know that you're out of town...a lot! If it were me...I'd be thinking long & hard about that place...weiging out your options carefully. Wherever you buy, you're likely to be there a very long time
I've thought about it for the past few days, and have decided to pass on this house. I'm not in a hurry, so I can wait for something better to come along in the next few months.

Personally, I think that is a very wise choice! That's a lot of $$ to be stuck next to neighbors you already don't like!. I'd rething that mortgage guy with the loose lips too! What you pay is absolutely NO ONES business...ever! Especially strangers!

BK 7 discharge 06.24.2020 No Fico score at all.