Forclose home buying help

[postmanpwc]

Well my father has talked to me about it several times now. So I'm getting serious about it after hearing all the information that he was giving me. I guess now is the time to buy with all the tax credit I would be getting from that bill Obama signed.

I also would like to sweeten the deal even more by purchase a forclosed home on top of that $8k tax credit I supposedly would get. Has anyone gone through this that have any advise for me? Like if I should try to get a bank loan or should I leave all that to a realtor? Prolly a house inspection too since its a forclosed home.

I also feel awfull for the folks that are losing their homes but at the same time the bank has already taken the home. So its not like I'm taking advantage of anyone.

 

[smokingman]

PM sent.
For others with questions about this feel free to PM me. Grumpe Owns Indiana REO Homes. She has dealt with nothing but investors,banks,and foreclosed homes for years. 90% of all Realtors know nothing about how these deals even work,it was beneth them when times where good. Now they are trying to catch up. Banks hate dealing with them,as do I
By that I mean most Realtors do not understand that buying a forclosed home is very different than a standard real estate purchase. It is a bidding process. And no matter how many times you tell them this,they do not understand how THERE client did not get the property. Grumpe is one of the absolute best in the industry(Foreclosed homes).

They changed the rules on the 8k,you can now use it as your DOWN payment! Or get it at the closing table.Good news if you are buying a house,bad news for everyone who is not(and pays taxes).
On the bank loan.Use your own bank.And get an FHA loan. The rate is fixed,very low,and has some of the lowest closing costs of any loan.If you bank does not offer FHA loans find one that does,a Realtor could help if you can not find one.AND make sure you agent goes over the HUD 24 hours BEFORE you close. If they do not they are not doing there job.The HUD states who is paying what,and how.

 

[RelicHound]

buying a forclosed home is just like buying any home I think. we bought our home 4-5 years ago and it was a forclosed home. we didnt go through a realtor tho,we did our own shopping. we first went to the bank to see how much we could get approved for then shopped for homes in that price range ended up buying ours at auction for 1/2 of what it appraised for and I figured if it needed any work Id still be getting a good deal. ended up needing very little work,mainly just things that we wanted.

youll save money if you do everything yourself but if you want to get a realtor it may be a good idea as they will be able to take care of most everything for you and be able to answer any questions you may be have. good luck!

 

[smokingman]

buying a forclosed home is just like buying any home I think. we bought our home 4-5 years ago and it was a forclosed home. we didnt go through a realtor tho,we did our own shopping. we first went to the bank to see how much we could get approved for then shopped for homes in that price range ended up buying ours at auction for 1/2 of what it appraised for and I figured if it needed any work Id still be getting a good deal. ended up needing very little work,mainly just things that we wanted.

you'llsave money if you do everything yourself but if you want to get a realtor it may be a good idea as they will be able to take care of most everything for you and be able to answer any questions you may be have. good luck!

Having sold around 200 foreclosed homes 99% are not like buying regular real estate. As you stated yours was at an auction.Most bank property is not sold this way.It is sold with closed bids offered to the bank itself. Was it a sheriff sale? If so that is not generally a foreclosed home,but a tax sale.And in this case a tax sale will not get you the 8k,but a foreclosed home will. Both reasons can save money. Unless you are buying a house that is well over 200k your better off getting the wonderful Obama money at this point,as the Realtor normally charges less than 3% on foreclosed property(paid for by the bank in every foreclosed home I have ever sold so it really costs you nothing and your getting the 8k).

 

[RelicHound]

Having sold around 200 foreclosed homes 99% are not like buying regular real estate. As you stated your was at an auction.Most bank property is not sold this way.It is sold with closed bids offered to the bank itself. Was it a sheriff sale? If so that is not generally a foreclosed home,but a tax sale.And in this case a tax sale will not get you the 8k,but a foreclosed home will. Both reasons can save money. Unless you are buying a house that is well over 200k your better off getting the wonderful Obama money at this point,as the Realtor normally charges less than 3% on foreclosed property(paid for by the bank in every foreclosed home I have ever sold so it really costs you nothing and your gettnig the 8k).

ahh Ok..I guess this is why Im not a realtor or one of them folks who flip homes
I guess we got ours in a tax sale then....it was like a silent auction.I showed intrest in the house and was told by the bank to call and make an offer. I figured it was a forclosed home being owned by the bank.
I kinda wish they had that $8k thing when we where home shopping but then again Im pretty happy with what we have..if our home would have been on the normal market we would have never been able to afford it so I figure it was a great investment.

 

[opus1776]

Originally Posted by smokingman

They changed the rules on the 8k,you can now use it as your DOWN payment! Or get it at the closing table.Good news if you are buying a house,bad news for everyone who is not(and pays taxes).

When did they changes the rules? I'm glad to hear this, as it would make it easier for me to get a house....

 

[smokingman]

When did they changes the rules? I'm glad to hear this, as it would make it easier for me to get a house....

Fast $8,000 down-payment assistance for homebuyers - May. 19, 2009

 

[hardtrailz400]

We just got our offer accepted on a HUD home. Very fair price. Locked in at 5% for a the mortgage. down payment of 3.5%. Home is appraised at 15,000 more than price being paid. No reappraisal fee since it is an FHA loan with a HUD house and a recent HUD appraisal.

I do real estate appraisals everyday and now is a great time to buy. Rates wont be low for a lot longer and Indiana has an additional 25,000 available if you meet the income criteria and the home is in the right location. Look for NSP info in Indiana. Mine did not qualify, but 8000 in tax back is good enough for me.