Thornton? (Denver, Arvada, Westminster: appointed, renting, buying a home)

[tfox]

You can get a good deal on a foreclosure, but it's not a guarantee. Banks can sometimes be surprisingly stubborn, holding onto a property for many months. Other times they are willing to deal. Something similar to foreclosures is a short-sale. This is when the bank will agree to work with a seller to accept a sale at less than the value of the loan -- you'll usually get a place in better shape that way since the foreclosed party didn't take a baseball bat to the place on the way out the door.

You can certainly get away with making lower offers and there's nothing wrong with attaching a cover letter to your offer explaining your reasoning (comparables, condition analysis, etc). It may work or may not; sellers can be emotional and sometimes will be offended by a lower offer. Clearly, it's not going to work to offer something 20% lower than the asking price. But lower than the asking price by single digit percentage, or to look at it another way, six months of mortgage payments -- these kind of offers have a chance of being accepted.

[moonreflection]

Thanks for the help information. That explains why some house a saw was in good condition from the outside but look very bad once you get inside. I guess got pissed being force out of their home huh? I also notice that were some house bought by the real estate for 20% below what most are offered in the surrounding area. Then they remodeled it with everything new and re-offered them 20% higher than most. Is it a good deal to get those without worrying about fixing up? How flexible are real estate owned house offer?

Oh, also. If a house is approved for short sale. Is it mean that's a fixed price? Since it is a short sale, that mean it's already lower than the loan owed.

You guys have been great help.

Thanks.

[tfox]

Originally Posted by moonreflection

Then they remodeled it with everything new and re-offered them 20% higher than most. Is it a good deal to get those without worrying about fixing up? How flexible are real estate owned house offer?

This is called fix-and-flip and there's a lot of people doing it, not just agents. It can be a good deal, you just have to know the market and know if it's a good deal when you see it. Agent-owned properties and others doing these kind of fix-and-flip properties are sold the same way as other properties. They can be very flexible given the right circumstances, however they are also probably skilled negotiators since they do this kind of thing for a living.

Originally Posted by moonreflection

Oh, also. If a house is approved for short sale. Is it mean that's a fixed price? Since it is a short sale, that mean it's already lower than the loan owed.

It's not a fixed price, but the bank has to approve it, not a seller. A short-sale payoff amount would be for less than the seller owes on their loan, that's what a short-sale means. I bought a short-sale and it was kind of a pain. I had to sit and wait for weeks for bank executives to get around to evaluating my offer while the poor seller waited and hoped the bank would take my offer. They eventually took the offer.


Thanks.[/quote]

[M.J.]

I bought into the notion of buying a house when the interest rates were low a few years ago, because I could buy a house and have the mortage payments be about the same as rent. You have to take into consideration that there is wear and tear on a house that you always have to be paying for. The utilities might cost more, there is homeowners insurance and things like that. So in reality, just because the mortage may be the same as your rent, that isn't taking into account all the other expenses that go into owning a home, that you don't have to deal with when you rent. I suggest continuing to rent until you have the money saved up to buy the house that you really are going to stay in for a lot longer than 2-3 years. I'm saying all this because it took me a full year to sell my house after owning it for three years. We put money into it fixing it up, but I didn't get any more for it than what I originally paid. Granted this all happened in Wisconsin...not Colorado. So take it with a grain of salt I guess.

[MadisonM]

The other posters are right on target. Contrary to popular belief, buying a home won't always save you money. Besides the mortgage, you pay taxes, insurance and the cost of repairs. If you buy a fixer-upper or a foreclosure, you may have to put a bit of money into the home. It could really add up, cutting into the money you hope to save!

At least as a renter you pay a set monthly amount and the landlord pays for taxes and repairs! Renter's insurance is also dirt cheap!

I agree with the other posters that given your timeline (2-3 years), it could be risky. Will the property appreciate enough for you to pay realtor fees and make a profit in the end?

I would encourage you to go to the IRS website and check out Publication 17, Publication 530 and Publication 936. This should help you estimate what, if any, your tax benefits might be.

[Katiana]

Originally Posted by M.J.

I bought into the notion of buying a house when the interest rates were low a few years ago, because I could buy a house and have the mortage payments be about the same as rent. You have to take into consideration that there is wear and tear on a house that you always have to be paying for. The utilities might cost more, there is homeowners insurance and things like that. So in reality, just because the mortage may be the same as your rent, that isn't taking into account all the other expenses that go into owning a home, that you don't have to deal with when you rent. I suggest continuing to rent until you have the money saved up to buy the house that you really are going to stay in for a lot longer than 2-3 years. I'm saying all this because it took me a full year to sell my house after owning it for three years. We put money into it fixing it up, but I didn't get any more for it than what I originally paid. Granted this all happened in Wisconsin...not Colorado. So take it with a grain of salt I guess.

The same things happen in Colorado. They happened to us. Considering you want to save up to buy a nicer house, I think you should continue renting, rather than buying a home whose mortgage payment will be higher than your current rent.

[Gijs]

has it gang problems?

[Noahma]

thornton and Northglenn (Thorntson neibor) are great places. Never ran into much crime here, and there are some great new sub-divisions near by. north of 120th is probably the best looking area in thornton. Thornton in recent years has been undergoing a revitilaization (sp?, its late) they have completly redone the sidewalks along 104th heading west and east. They have started up a program in northglenn to offer construction documents and inexpensive building permits for remodeling and doing additions to existing post WWII homes. Northglenn has some of the largest lots in the denver suburbs and is known for the trees. Thornton and northglenn have a jagged border, so you constantly cross between the two while traveling, and they share a great deal of work between them.

[Noahma]

Originally Posted by karenbataglia

I have lived in the Denver metro area for 20 years. Thronton is the least desirable suburb to live in. There arent' really any jobs there. It has a large Hispanic community. Don't know anything about schools etc.

Commerce City has been getting the rap in the northern burbs as being the least desirable due to the heavy industry in its borders. most of the denver area has a large hispanic population, as a matter of fact, i was hearing on the news the other night, that now the hispanic population is the majority within denver, and caucations are now a minority, if that is of any importance to anyone.

[tfox]

Originally Posted by Noahma

Commerce City has been getting the rap in the northern burbs as being the least desirable due to the heavy industry in its borders. most of the denver area has a large hispanic population, as a matter of fact, i was hearing on the news the other night, that now the hispanic population is the majority within denver, and caucations are now a minority, if that is of any importance to anyone.

Actually, Caucasians still outnumber Hispanics in the city of Denver by a factor of about 2-1. What I think you heard is that Minorities as a whole are now slightly over 50%, but that includes African Americans, Hispanics, Native Americans, Asian Americans, Mixed Race/Bi-Racial.