Buying a Home in Miami (short sales, foreclosures, insurance)

[Mrtrainon]

Need all the good advise I can get on buying a home in the prices ranges of 120-150k,In areas like miramar,doral,miami lakes,and hialeah, i know the price im looking for seems cheap compare to most home prices in miami,but i just need advise,being alot of homes right now are dropping in price,and i need to find things out like intrest rates,hurrican insurance and house taxes,and and how much is normally exspect to put down payment on a home that maybe 150k,I just basically need all the info i can get.thanks ps i know now seem like not the best time to buy a home but this is an investment for me

[gymbuff]

I am sure you can find something, but it MIGHT NOT be a house, maybe a condo or a townhouse. YOur down payment will vary depending on the type of mortgage, but I think it will be at least 10% of the selling price. Taxes and insurance are the real killers when it comes time to pay a mortgage. Try to buy a home from someone who has been living in their home for a very long time so that at least you can inherit their low taxes for one year.

[Mrtrainon]

But ive seen homes that the bank has taken over and selling online on craights list for the price of 150k,can you explain that?

[Nikki9947]

What areas around Miami are these houses for $150K on Craigslist in? (I think I can guess but I'm still somewhat curious) This might provide a better explanation.

[Lost in Translation]

Originally Posted by Mrtrainon

But ive seen homes that the bank has taken over and selling online on craights list for the price of 150k,can you explain that?

Some banks list their REO properties at below market prices (based on comps of recent sales) to attract attention to their listings and start bidding wars. We recently purchased a foreclosure in SW Broward, but actually had to pay more than asking price because we were tired of trying to outbid other buyers on homes we really liked. I'm not sure if this is the tactic you are seeing on Craigslist, but I wouldn't be surprised.

For the record, I would get a realtor who has had experience with foreclosures/short sales. Our realtor was a godsend and really helped us understand and get through the whole process. Also, a bank that can't/won't hire a realtor to list their property in the MLS is a bit worrisome to me.

[gymbuff]

Originally Posted by Mrtrainon

But ive seen homes that the bank has taken over and selling online on craights list for the price of 150k,can you explain that?

I cannot explain it. All I know is that in my building, there is a foreclosure for 99k. It has not been sold because the bank has some issues with the price. I think that when a property is in foreclosure, it is advertized for the remainder of the balance, thus creating a bidding war. So a home for 150k like the ones you have seen might sell for more.
Also, alot of these homes need major work. I doubt any of these homes are "turn-key."

[Laura88]

You also have to be careful about the condition a property is in, because if it is not a "turn key" property (you can move in/live there without making major renovations,) then your financial institution may not give you financing. So definitely do your homework.

It is going to be really hard to get a house in a decent area for $150K, imo. A condo or townhouse is possible though.