Buying foreclosed property in ME (Portland, Oxford: real estate, foreclosure, mortgages)

[spose]

I received an e-mail tonight from a family member, informing me that a home that was being built right next to property I own in Oxford County was being "taken over by the bank". At this point, that's ALL I know. When I was up last summer, I noticed that construction had been stopped for some time and has not resumed. Although this home is much larger than what I had intended and I have no idea what the inside looks like, it could be a very viable alternative to building from scratch and putting in well and septic, depending on the cost.

I certainly need to find out a lot more about the situation and will see a lawyer (preferably specializing in real estate) if I decide to go through with it, but my question for now is: Does anyone have any experience with buying a foreclosed home in Maine?

Normally, I wouldn't be looking into foreclosed property...the idea is kind of scary...but it's right beside my land, which I haven't done anything to yet. Under the circumstances, I feel I should at least look into it. Any thoughts or DMs on this would be appreciated.

[spose]

BTW, the guy who started building is in the construction business. I'm pretty sure the home was being built for resale but never finished because of the economy. I don't know if that really makes any difference, but my conscience would bother me if it was a case of someone having to give up their home.

[Nancy-NJ-NY-ME?]

'Being "taken over by the bank" ' - no matter what state the land is located, is typically a bit of a process.

While not being familiar with the particulars of the process in Maine, generally speaking, I would investigate what leins, mortgages, etc., are recorded for the property. Also find out if there are any outstanding taxes on the property. Your research will also tell you the recorded name of the property owner. And presumably you have or can get a realistic idea of the market value of the property.

Having the debt and value information, etc., , I would open a dialog directly with the owner. Depending upon the stage of the foreclosure process, the owner may be in a position to sell to you without having to wait until the bank takes title.

As other folks here are very experienced in real estate transactions in Maine, I'm sure they'll offer great suggestions to you.

[WhoFanMe]

The chances are that unless you have cash you will not be able to buy the property, as investors will not finance a property in this condition. You will need to research or have somebody research who owns the property and what liens are in place and where the foreclosure process (and I do mean process) is. Perhaps you could buy the property from the owner or bid on it at an upcoming auction. With most auctions the property will go back to the primary lienholder who won't let the property go for what most bids come in at and they will eventually list it with a real estate agent. Depending upon where the process is, it could be a long time before it's resolved.

[spose]

This is long overdue, but I would like to publicly thank WhoFanMe for directing me, through direct messages and e-mail, on how to even start this process. He definitely went out of his way to assist me.

Thank you, Rick, for all your help. If you spend time and effort helping someone purchase unlisted property, there should be some very satisfied buyers and sellers in and around Portland.

As for my current status...ongoing. At this point, I don't know what the final outcome will be, but at least I'll know I've checked into it. And I still have my land, anyway.

[WhoFanMe]

Thank you Sherry, I really appreciate that.

[island mermaid]

Originally Posted by spose

This is long overdue, but I would like to publicly thank WhoFanMe for directing me, through direct messages and e-mail, on how to even start this process. He definitely went out of his way to assist me.

Thank you, Rick, for all your help. If you spend time and effort helping someone purchase unlisted property, there should be some very satisfied buyers and sellers in and around Portland.

As for my current status...ongoing. At this point, I don't know what the final outcome will be, but at least I'll know I've checked into it. And I still have my land, anyway.

^bump^ WhoFanMe has been long standing member of this forum for many years, his well thought out posts as well as accurate information regarding real estate in Maine has always been reliable and honest. I personally know he has been extremely helpful in several cases where new members come in to the forum looking for information and he has always been helpful in providing that information without any agenda other than honesty. Straight up and forward, just the way info here should be provided.
We're extremely fortunate to have such a valuable member, myself and many others here count on him to answer questions regarding his industry as well as his general knowledge of Maine.

Thanks spose for reminding us all that at times accurate information is hard to come by in this forum and be thankful that WhoFanMe is here to help us all.

[spose]

Update: Turns out the partially-built house I was interested in was started by owner/builders who changed their minds about building but luckily did not have to go through foreclosure. However, the construction/loan company that took the deed in lieu of foreclosure had more money already invested in the property than my husband and I were willing to pay. They were very open to our offer and were willing to negotiate, and the view is even better than from our lot, but the house is just too big and needs too much more work to make it viable for us.

Should anyone else be thinking of buying property that a lending institution has taken back, it would be great if the home was exactly what you were looking for. Otherwise, IMHO, see a good real estate agent (I know of a good one!) to help you find what you need.