Foreclosure homes
Long story short, I'm looking at foreclosure homes. Cheaper than paying rent and no pet restrictions to worry about (besides the county laws). I understand sometimes they could come in really bad shape. Do you think it would be worth it as a starter home? Should I go through a realtor or sign up on one of those websites that list foreclosed houses in auction. Not asking as a "I'm gonna start shopping this week/month/year" thing, I just have no clue of anything when it comes to going about buying a house and would like to know more.
Comments
Get a realtor. Foreclosed houses in auction are not very reliable. The starting bid is usually extremely low, but once the bidding starts, the ending bid is usually within the median home price range of that area. I really don't believe in buying homes for cheap that are in bad condition. Just fixing everything could cost tens of thousands. If you plan on staying in your first home for a few years, I would suggest just paying the extra money for a home that is in pretty good condition, just needing cosmetic fixes or something. Usually people who buy homes that are "fixer uppers" are the kind of people who flip it right after the fix it to make a profit and move onto another job. Foreclosed homes not in auction could be a really good deal though. They are tough to find and usually get sold pretty quickly, but you never know. You might want to talk to Jessica, I believe the home she just purchased was a foreclosure.
My mom is a realtor, I can give you her information if you want to meet with her and get some information about the whole buying process.
thanks romi
yeah i was hoping jessica will find herself here to help me out :P
HERE I AM....
ALWAYS go through a realtor. It is their job to keep you from getting screwed, those sites are way sketchy.
My house was a foreclosure bought by a realtor. He started a major overhaul to it when the market crashed. All he hadn't finished was the kitchen.
I would definitely talk to Romi's mom (even if you do feel uncomfortable). Frankly I found the whole buying a house thing really uncomfortable (way more grown up than I ever planned on being). But totally worth it. If you have good credit, now is a great time to buy a house, and there are a TON of foreclosures on the market. Idealy you should have a minimum of 10% to put down (ideally 20%), with great credit you can do one of those 0% down deals but mortgage companies are getting way more strict with those. Really the only difference between buying a foreclosure and any other house, is typically you are buying the house "as is" (so make sure to hire a REALLY GOOD INSPECTOR, and you are buying the house directly from the bank as opposed to a homeowner. Which is all the more reason to hire a realtor, because the bank will have plenty of very smart people representing their interests, you need someone to represent yours.
Ok, realtor I go!
Romi I'll bother your mom only if you ask if it's ok with her first. It is still a while down the line, I would just like to know what I'll need to be doing in the mean time.
Both Errik and I have excellent credit (well we know he has excellent credit, I've never checked my score but I know I have at least great credit) and we'll have the 10%-20% of down payment no problem.
Barbara there's an overabundance of foreclosed homes in Orange County. This is a buyer's market atm. As long as we live below our means and have a safety net in case of emergencies and unexpected costs.
Sure no problem, shes in Japan right now, but she'll be back on April 1st. I will give you her email, if you feel more comfortable doing that. It might still be hard for you 2 to get a loan because you guys are so young and don't have that much credit history. You might need to add a parent or someone you trust. Keep in mind, a lot of the foreclosed homes are newer that may have HOA's, Mello Roo's and community fee's as well as adding in property tax for each year.
BTW, weren't you planning to move up north?