Making a Move on a Foreclosure....

[fishbjc]

House foreclosed on...surprising though, the owners left it SPOTLESS and left the appliances.  Even the yard is clean (other than winter debris)....I'd love to hear stories from those of you who went the foreclosure route.  These people also left the shower curtains!!!!  CRAZY after all of the horror stories!!!

This house has been listed for three months, one price reduction.  I'm hoping to snag it for at least $10,000 below asking. 

[Lel]

Most people who go through foreclosure don't trash their homes.  They are people who got into a rough patch in life and had no other recourse.  They still have pride in their homes and try to leave it in a state that reflects the way they lived.  Unfortunately, the press makes a big deal about those who choose to "punish" their lender.

It also seems like the bank owner has done a decent job of maintaining the property.  Not all lenders are willing or able to do so.

Good luck with your offer.  Do you know the name of the bank owner?  Sometimes they prefer or require that financing be done through them.

[BrianB_The_Loan_Professor]

This is more common that you hear about - we hear about the horror stories but the people that are responsible and  leave the home the way it should be never make the news.......

Good Luck  on the offer -

[happy0510]

Nice!! Where are you? Our foreclosures ARE real life horror stories! I seen a few and they were not in good shape!  I'm in L.A.

[ShanetheMortgageMan]

Love the story about the guy in Ohio who bulldozed his home, what he didn't realize though is that you can't just trash a banks collateral, you can be liable.  I suspect at some point an example will be made out of people who do try to punish their lender by wrecking the home.

[ArmyStrong]

I found a foreclosure in very good condition in GA. Clean walls, carpet (more or less), and appliances & fixtures in tact. Having said that, I've looked at dozens in not so great shape. Not neccessarily trashed, but not taken care of either.

[Anonymous]

I too am currently hunting and found a gorgeous foreclosed property. Great shape (or so it appears), no appliances. It's currently listed at $277,000. Since I'm doing an FHA, will this be a problem? Also since it's bank owned, is it prudent to ask for both a price reduction (given it's missing appliances) and closing costs credit? Or should I move along and look at another property? All answers and opinions are welcome and greatly appreciated. Best regards, everyone.

[ArmyStrong]

Korgsman--From what I understand, Foreclosures aren't a problem for FHA. They will just require their own appraisal and the house can't have over XX amount of needed repairs. Since it's bank-owned, you will make an offer, or bid on it. Your agent should provide you with a list of comparable recent sales in the area to help establish what the property may be worth. He or she can also advise you on asking for closing costs. It doesn't seem to be much of a different process, in terms of the questions you've asked. The big differences would come if there are multiple bids on the same property, then you have to strategize! Sounds like you haven't spoken to a realtor or buyer's agent yet. Get one!! Good luck to ya! 

[Anonymous]

ArmyStrong- Thank you very much for your advise. I'm still at the pre-app stage and looking for both an agent and something within or lower my pre-approved amount. I will keep you posted on my progress. Thanks again and best regards.

[Anonymous]

FHA requires a stove I am pretty sure at least as far as appliances go.  The thing with FHA is they do not care about whether or not it is a foreclosure, but it has to be totally habitalble as it is.  that means caprets, painted walls, no major plumbing, electrical, HVAC issues, etc.  Again, I am pretty sure they require the stove to be working as well for the inspection.  (we had to go buy one and sneak it into the house when we bought a foreclosure)