question about a foreclosed house

[devildog02]

my folks called me and told me about a house, its in the process of being auctioned off by something they call a sheriff's auction on june 19th i know what the people owe on it and have been pre-approved for more then they owe, my question is has anyone here ever bought a house in this situation, im sure its different state to state, im in iowa, there are some back taxes to take care of and and i think i understand how that works. anyway no one i know has ever bought like this, and this would be my first house, thanks in advance bill ps if karen bought it for me i would change her last name!!! HINT HINT HINT

 

[JTS VENOM PERFORMANCE]

my folks called me and told me about a house, its in the process of being auctioned off by something they call a sheriff's auction on june 19th i know what the people owe on it and have been pre-approved for more then they owe, my question is has anyone here ever bought a house in this situation, im sure its different state to state, im in iowa, there are some back taxes to take care of and and i think i understand how that works. anyway no one i know has ever bought like this, and this would be my first house, thanks in advance bill ps if karen bought it for me i would change her last name!!! HINT HINT HINT

uh no, I live in a bus

 

[shade]

Forclosed houses are great to buy as long as......

The price you get it is better than MARKET value (not appraised value).
I assume you know the difference but make sure you know exactly what the house is worth on the open market.

Next you have the reserves to pay on the mortage for a few months (if you want to flip it) and not worry about other finances.

In this market if you do want to flip you need to expect a 4 month selling period minimum depending on your locale. Some markets are still selling fast and some are complete dogs.

You already covered back taxes so you understand that. What about repairs to the house? You need to figure that in.

It boils down to those items and if you have them covered then you are in the right path to make some money.

If you have to worry about paying 2 mortgages (if you already own a house) then dont do it as you could end up in the same situation as the people being foreclosed on.

 

[devildog02]

Forclosed houses are great to buy as long as......

The price you get it is better than MARKET value (not appraised value).
I assume you know the difference but make sure you know exactly what the house is worth on the open market.

Next you have the reserves to pay on the mortage for a few months (if you want to flip it) and not worry about other finances.

In this market if you do want to flip you need to expect a 4 month selling period minimum depending on your locale. Some markets are still selling fast and some are complete dogs.

You already covered back taxes so you understand that. What about repairs to the house? You need to figure that in.

It boils down to those items and if you have them covered then you are in the right path to make some money.

If you have to worry about paying 2 mortgages (if you already own a house) then dont do it as you could end up in the same situation as the people being foreclosed on.

we rent now and i dont want to "flip" it, i do not have the assesed value and i do not know what a market value is this will be my first house, i do know the assesed value of my parents house which is in site of this one but i think it is nicer and has 1 more bedroom, im not sure if there could be some legal things im missing, as for the repairs i havent seen the inside but the outside is imo outstanding!! any chance i could call you to get your thoughts? sounds like you know your stuff:rock: mind you im in iowa and its nothing like the houses in the sig pics i see here, but it is somthing i might be able to afford. Thanks for the info Bill

 

[devildog02]

uh no, I live in a bus

stinker how much for a bus pass that bus looked extremly fast at boomers:burnout:

 

[Gaboon]

Have you thought about talking with a local appraiser or realtor for an opinion of what they think?

 

[devildog02]

Have you thought about talking with a local appraiser or realtor for an opinion of what they think?

thats how i got all the info i have (realtor) and she's an x so with the gf it needs to be kept breif if you know what i mean. she gave me a lot of info actually call the bank president to get it, but man karen doesnt like it, she recomended calling the owners direct, she sounded like normaly she would have done that for me but someting about this time? she said you dont know how the people will react. and i understand that, i would be pissed also, but what if i could buy it befor it goes to auction then i wouldnt be a foreclosure. right? if this gets to the point of hurting anyones feelings i will pass and find somthing diff. guess im trying to look at this from a perspectives

 

[speed junkie]

Since it is a foreclosure you need to call your L.O. and tell them that. A lot of lenders are very sticky when they see the property is a foreclosure or sheriff's sale. They might need to get you pre-approved with a different lender. Contact the people who already own the house and see if you can get it from them. Ask them to find out if their mortgage co will let them do a short sale. Are they still living there? If they are then the deed probably is not in the sheriff's name yet. What ever you do be carefull. If you can buy it from the current owners than you don't owe anything to your realestate agent. You'll need to fill out a purchase agreement with them and make sure that it states up to 6% seller concessions so you won't have to bring money to close if your loan program allows. It seems most lenders anymore only allow up to 3% sellers concessions at 100% L.T.V. so you might have to bring money to close. I tell all my clients to keep their money if possible so i try to find them a program that allows them to bring the lowest amount of money to close. I am no expert but i am a loan originator and have bought a few foreclosed properties one that i am currently working on.

 

[JTS VENOM PERFORMANCE]

stinker how much for a bus pass that bus looked extremly fast at boomers:burnout:

2 bucks

 

[SilvrSRT10]

Often a foreclosed home may have been abused or at best not cared for. Make sure all the fixtures are still there and everything is in working order or at least in a state that your willing to accept it. Good luck.

 

[devildog02]

thanks for all the help, i think i need to contact the current owners which is a little scary for me, not knowing what they will say, i looked at the house from the road and driveway, it is vary nice everything on the outside looks to have been replaced or upgraded in last few years!as for the inside i cant say:dontknow: ive always been told "if it sounds to good to be true, it probably is!" and this house and situation gives me that vibe. thanks again for all the help!!! man im dreading talking to a family about to lose there home!!!

 

[SilvrSRT10]

I thought the foreclosure had already been done. I thought the house was sitting vacant. Yeah, talking to the current residents doesn't sound like any fun. GL

 

[muscletrucks]

Being that I just sold a house in Baltimore that sat empty for a year, I may have a little different perspective. If someone would have come to me with a reasonable offer, I would have welcomed the opportunity to do a deal. Luckily I still made a significant profit on the sale.

It is hard to take emotion out of the equation (becuase currently it is their home), but if you look at it from a pure financial perspective, they need to get out of it to save their credit (or some other situation). If you know what their needs are, and the place looks good (get a good inspector) you may just be the knight in shining armor and everybody walks away a winner..

Talk to them, just be very respectful of their situation.

 

[speed junkie]

Being that I just sold a house in Baltimore that sat empty for a year, I may have a little different perspective. If someone would have come to me with a reasonable offer, I would have welcomed the opportunity to do a deal. Luckily I still made a significant profit on the sale.

It is hard to take emotion out of the equation (becuase currently it is their home), but if you look at it from a pure financial perspective, they need to get out of it to save their credit (or some other situation). If you know what their needs are, and the place looks good (get a good inspector) you may just be the knight in shining armor and everybody walks away a winner..

Talk to them, just be very respectful of their situation.

This is the very best advice. Couldn't say it better myself.

 

[Devildog02's_Passenger]

my folks called me and told me about a house, its in the process of being auctioned off by something they call a sheriff's auction on june 19th i know what the people owe on it and have been pre-approved for more then they owe, my question is has anyone here ever bought a house in this situation, im sure its different state to state, im in iowa, there are some back taxes to take care of and and i think i understand how that works. anyway no one i know has ever bought like this, and this would be my first house, thanks in advance bill ps if karen bought it for me i would change her last name!!! HINT HINT HINT

 

[Devildog02's_Passenger]

thats how i got all the info i have (realtor) and she's an x so with the gf it needs to be kept breif if you know what i mean. she gave me a lot of info actually call the bank president to get it, but man karen doesnt like it, she recomended calling the owners direct, she sounded like normaly she would have done that for me but someting about this time? she said you dont know how the people will react. and i understand that, i would be pissed also, but what if i could buy it befor it goes to auction then i wouldnt be a foreclosure. right? if this gets to the point of hurting anyones feelings i will pass and find somthing diff. guess im trying to look at this from a perspectives

Keep what breif Bill? I thought you told me everything she said on the phone!