[happymccamper]

Is anyone out there familiar with buying a foreclosure home? What steps should be taken....what inspections are needed? When is there is too much fixing up to be done and its not worth buying it at all? What should you be really concerned about like insects, mold, etc.? What questions need to be asked before you sign on the line!?

Thanks for any help you send my way!

[SoFLGal]

Generally, with foreclosures they will not fix anything and it's "as is". You usually have 10 days from the time the contract is executed to have a home inspection. If you find something you don't like you can back out of the contract within that 10 days.

There are some very good deals that are foreclosures. I would take each thing that needs repair and price it out until you get the hang of what things cost.

You need a good home inspector, it's well worth the $200-$500 you will spend on the inspection.

Good luck!

[BucFan]

Isn't there a possibility that you can be held responsible for unpaid HOA or taxes for the foreclosed property that you're buying?

[Racelady88]

Originally Posted by BucFan

Isn't there a possibility that you can be held responsible for unpaid HOA or taxes for the foreclosed property that you're buying?

That is why you get title insurance. Any issues like that should be paid by the seller.

[CJFlorida]

Some items such as IRS liens and unpaid utility bills or contractor bills can be hard to find out about. You also have to make darn sure the search is very complete as 2nd-3rd notes can be in default in addition to the initial loan.

Be careful buying foreclosures in a falling market such as Florida. We are still early in the game so you can have numerous bidders for a desirable property. A 'good deal' now may be a bad deal in a year or so.

The very experienced investors will most likely have a big advantage over a lay person. Do 10 times the amount of research you think you need to before jumping into the shark infested foreclosure waters.

[happymccamper]

Originally Posted by CJFlorida

\The very experienced investors will most likely have a big advantage over a lay person. Do 10 times the amount of research you think you need to before jumping into the shark infested foreclosure waters.

That s what I have started to think after reading more about it...maybe a preforeclosure or just a reasonable bid on a starter home in this housing mkt is a better way to go. Its so expensive just to update and re-decorate to what you want...let alone super repairs...thanks for all input!

[Magnulus]

The housing market isn't anywhere near bottom, in fact I'd say in the area where I live (Central Florida), it is still sliding and we haven't even really begun to see the real hits to housing- there is some big economic pain that is just starting to work its way down. I wouldn't look into buying just yet unless you've noticed some activity in a particular area.

[happymccamper]

Originally Posted by Magnulus

The housing market isn't anywhere near bottom, in fact I'd say in the area where I live (Central Florida), it is still sliding and we haven't even really begun to see the real hits to housing- there is some big economic pain that is just starting to work its way down. I wouldn't look into buying just yet unless you've noticed some activity in a particular area.

I am curious when things are going to hit rock bottom, I would hate not to strike while the iron is hot w/any home, but also strike to soon....we won't be able to pry buy a home for at least another year anyway and I was hoping that wouldn't hurt us for finding a good deal

[tallrick]

I have not seen a good deal on a foreclosure in over 10 years. Be patient, the good deals will come, eventually.

[Magnulus]

Originally Posted by happymccamper

I am curious when things are going to hit rock bottom, I would hate not to strike while the iron is hot w/any home, but also strike to soon....we won't be able to pry buy a home for at least another year anyway and I was hoping that wouldn't hurt us for finding a good deal

Right now alot of people are playing "wait and see", holding the prices high and occasionally catching a sucker. When the panic selling really starts, and cuts start to deepen and the psychology of sellers changes, that's probably the time to start looking at buying. I just don't think the psychology has really settled in on alot of the sellers.

Plus, it will probably take years for the market in Florida to rebound. I don't think that's an exaggeration. So you shouldn't buy too high a price, or too soon. You don't want to be stuck owning a property you won't make money off (if you want to flip it, if you want to rent it, that's another story but even then I suspect more people will either look for cheap apartments/condos, etc.).

Occasionally I watch "Flip that House", a show for the truely optimistic/delusional rags-to-riches wannabees out there (and no doubt responsible for alot of subprime meltdown). The funniest episode was when these guys bought a house in Paramore in Orlando at an inflated value, fixed it up for thousands of dollars, and COULDN"T SELL IT. What a bunch of morons, obviously knew nothing about the area. Nobody was interested in buying a house with a new modern kitchen with granite counter tops... in the middle of "the 'hood". Just shows you that location is everything.