Buying a house in foreclosure

Steve in PA · #21 01/14/13, 08:31 PM

What can drag it out even longer is if they declare bankruptcy. My neighbor did that. The house sat vacant for a year or two and the bank repo'd it. Then they declared bankruptcy and it sat for another 5 years.

Bankruptcy laws vary by state though.

Nevada · #22 01/14/13, 09:18 PM

Quote:

Originally Posted by Bob Huntress

Find out which bank owns it and contact them.

If the bank owns it then it's too late, the foreclosure opportunity has past.

Nevada · #23 01/14/13, 09:21 PM

Quote:

Originally Posted by frogmammy

And some people are getting foreclosure mixed up with tax sale!

Mon

I think some people are getting foreclosure mixed up with a bank REO.

**clovis** · #24 01/14/13, 09:36 PM

Quote:

Originally Posted by fantasymaker

LOL Once again its a very location specific question and after 7500 posts you havent seen fit to put your location in your header.
So the BEST advice I can give you is to call the mortgagor and the mortgagee. Ask them both what it would take to get the house.
OFTEN the lender will call the loan closed and satisfied if the owners sell it at a short sale and give them about what they think they could get minus their foreclosure expenses.
Offer the owner a grand cash in addition to the short sale money.

I am in Indiana.

**clovis** · #25 01/14/13, 09:43 PM

Quote:

Originally Posted by Nevada

If the bank owns it then it's too late, the foreclosure opportunity has past.

The homeowner has been gone for over a year.

I haven't seen anyone there except for the city workers who mowed the lawn. The city charges $350 if they come mow.

**clovis** · #26 01/14/13, 09:47 PM

I should add that my wife and I would like to buy a foreclosure, either for a fast flip, or a long term investment into a rental property.

We've passed on a number of homes already, just because I am stuck on this property.

Now, I am getting worried that I am passing up good homes, and that I'll miss out on this one when it comes onto the market.

theemon · #27 01/15/13, 04:09 PM

you need to go to your local court house, they will direct you to a department( treasure i belive) and you can just walk in or call and ask anything about the property. i just recently bought my first house and i called down and the lady told me EVERYTHING about the property, including what bank leins(none on mine) how much taxes would be per year, etc, they will also tell you how to purchase the land.

Nevada · #28 01/15/13, 06:10 PM

Quote:

Originally Posted by clovis

The homeowner has been gone for over a year.

I haven't seen anyone there except for the city workers who mowed the lawn. The city charges $350 if they come mow.

It doesn't matter. If the home is still in foreclosure then it's the homeowner's property. If the foreclosure is over then it's either the bank's or an investor's.

Your state only allows mortgages, no trust deeds. That means that the government has to become involved in all foreclosures. I don't know the laws in your state, but mortgage states normally have foreclosure end with a public sale. Of course the bank can always bid on the house at the public sale. Usually the property reverts to the bank if there is no minimum bid made.

The significance of the public sale is that the bank can sell risk. They don't know the condition of the house, so they could end-up with a problem asset. They are usually willing to let the property go in an as-is basis for a lot less than they're going to charge if they take possession of the property and put it on the open market. That because on the open market they will need to show the house and guarantee title.

The state of the foreclosure is critical to getting a good price. It's possible to pay half the open market price during a foreclosure.

**clovis** · #29 01/16/13, 08:52 AM

Again, thank you for the replies!!!!

I think I am going to head to the courthouse this week to investigate the house.

I appreciate your replies and advice. Discussions like this have helped me understand this situation a little better, and I am looking at it in new light.

Again, thank you!!!!