Montana Foreclosures (Missoula, Ronan: short sale, real estate, crime)
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I'm starting to get the drift that there are more and more foreclosures popping up in western montana.
Anyway, what does anyone know about foreclosures as far as buying a property in or going into foreclosure.
I suppose I could go read up on it, but that usually takes ten times longer to separate the BS from reality than it's worth. And the info from a few good people is worth six books fatten up for no other purpose than to sell the book, you know how that goes.
So anyone have any experience they'd like to share.
Boy, would it really be so bad if home prices did continue to drop to the point where our own kids could actually once again be able to afford to buy a home in their own town.
I'm starting to get the drift that there are more and more foreclosures popping up in western montana.
Anyway, what does anyone know about foreclosures as far as buying a property in or going into foreclosure.
I suppose I could go read up on it, but that usually takes ten times longer to separate the BS from reality than it's worth. And the info from a few good people is worth six books fatten up for no other purpose than to sell the book, you know how that goes.
So anyone have any experience they'd like to share.
Boy, would it really be so bad if home prices did continue to drop to the point where our own kids could actually once again be able to afford to buy a home in their own town.
Even though your focus is on Montana property, I would put the general question about how to buy a property in foreclosure on the Real Estate forum. Those guys are really up on this stuff and the sheer thought of it whips into a frenzy like sharks to chum. Good luck.....and keep your arms and legs in the boat.
Even though your focus is on Montana property, I would put the general question about how to buy a property in foreclosure on the Real Estate forum. Those guys are really up on this stuff and the sheer thought of it whips into a frenzy like sharks to chum. Good luck.....and keep your arms and legs in the boat.
Good point, my understanding that it can be a nasty business. In some places it works out well for people, in that they find great places and buy them on the cheap.
In others, not so much. And you're dealing with people's homes that they can no longer afford.
Even if I had the money for it, and it was a great market, I doubt I'd do it for investment purposes. Buying one to live in would be hard enough. To make money? Not sure I have the stomach for it.
Good point, my understanding that it can be a nasty business. In some places it works out well for people, in that they find great places and buy them on the cheap.
In others, not so much. And you're dealing with people's homes that they can no longer afford.
Even if I had the money for it, and it was a great market, I doubt I'd do it for investment purposes. Buying one to live in would be hard enough. To make money? Not sure I have the stomach for it.
I am near the Sacramento/Stockton area in CA where foreclosures have been the highest in the nation. One thing to watch for is that some of the angriest homeowners have sabotaged the home just before they left. They have stolen light fixtures out of the ceiling, ripped out sinks, and answered nature's call in what you and I would consider inappropriate places.
Also, the foreclosure has a negative impact on the surrounding houses. If you can find an isolated foreclosure in an otherwise stable neighborhood, you might get a good buy. If several houses are foreclosed in the same neighborhood, crime and vandalism usually increase. Also, the lender's are less likely to give you a loan, or at best ********* with a "premium" rate to make up for the extra risk to them.
Back to JoeJoeMan's financial question. When I was looking at these buys in the last month, I found a big difference between a "short sale" and a foreclosure. Again I would refer you to the "real estate" or "mortgage" forum. The big trend in CA now is to group hundreds of these houses together into an auction. You might be able to snatch one up at a low price if no one else is bidding, but you have to inspect it very carefully ahead of time.
Last edited by GLS; 01-27-2008 at 10:22 AM..
Reason: Because
There is actually a formula re: the impack of foreclosures upon overall homeprices which is -1% for each home in foreclosure within 1/8th of a mile. Now how one establishes the basis is the first issue.
For example, I was in Mesquite Nv a month or so ago "just looking" and asked the realtor I was golfing with what this and that house might be worth. He responded, "we won't know until one sells". Some of the commentary about fairness, and poor people out of their homes might be a tad naive. Until there is an active market, there is no potential at all for anything but a foreclosure market.
Thanks for the info guys, I will take a look in that other forum.
With respect to some of you comments - GLS's inparticular......it seems that some issues are local, for example I don't think MT will see concentrated inner city type sections with large foreclosure rates, because are cities don't have that type of makeup. Which is kind of my point, what's it like in Montana. Some local forclosuer I've heard seem to nicer homes in nice neighborhoods or areas.
I could be wrong but I suspect the dynamics are different here than in say LA.
Also, an interest I had in buy a foreclosure won't be for investment, but rather residence.
If I went up to a realestate agent and said I'd like to find a forecloser hoping to pick up a bargin.......what do you think his reaction would be ? Would he be thinking "why should I do that for you, if it's a bargin, I get it for myself", I have no clue how that all works. Do agents just perfer or net even deal in forclosuers for clients ?
Thanks for the info guys, I will take a look in that other forum.
With respect to some of you comments - GLS's inparticular......it seems that some issues are local, for example I don't think MT will see concentrated inner city type sections with large foreclosure rates, because our cities don't have that type of makeup. Which is kind of my point, what's it like in Montana. Some local forclosuers I've heard seem to be nicer homes in nice neighborhoods or areas.
I could be wrong but I suspect the dynamics are different here than in say LA.
Also, an interest I had in buy a foreclosure won't be for investment, but rather a residence.
If I went up to a realestate agent and said I'd like to find a forecloser hoping to pick up a bargin.......what do you think his reaction would be ? Would he be thinking "why should I do that for you, if it's a bargin, I get it for myself", I have no clue how that all works. Do agents just perfer or not even deal in forclosuers for some joe-blow client like me ?[/quote]
Thanks for the info guys, I will take a look in that other forum.
With respect to some of you comments - GLS's inparticular......it seems that some issues are local, for example I don't think MT will see concentrated inner city type sections with large foreclosure rates, because are cities don't have that type of makeup. Which is kind of my point, what's it like in Montana. Some local forclosuer I've heard seem to nicer homes in nice neighborhoods or areas.
I could be wrong but I suspect the dynamics are different here than in say LA.
Also, an interest I had in buy a foreclosure won't be for investment, but rather residence.
If I went up to a realestate agent and said I'd like to find a forecloser hoping to pick up a bargin.......what do you think his reaction would be ? Would he be thinking "why should I do that for you, if it's a bargin, I get it for myself", I have no clue how that all works. Do agents just perfer or net even deal in forclosuers for clients ?
Well, with the discussions I've seen here about agents, I'd say that most of them don't care where they get their commission from... as long as they get it. Why would you specify foreclosure? I think you'd be better served saying, "I'm looking to buy... and I hear foreclosures can be really good bargains"
On the other hand, if the bank is trying to recoup from a very large loan back when the market was really high, you're not going to get a good deal, because they can only go so far.
If you want to shop foreclosures a good way to go is to check the notice of sales in the public records and newspapers. Those are your indications that a foreclosure is scheduled to happen. Of course if the foreclosuree (or however you say that) happens to suddenly come up with the amount due that notice of sale will be canceled but that be the game. You will want to make sure that you have proof on hand that you are good for the funds because the bank will want that.
As far as the deal you can get on a foreclosure, it really depends on the individual situations. Most of the recent foreclosures are because people have ARM loans that have readjusted to a rate to high for the current mortgagor to handle or because they simply bit off more than they could chew. These probably won't sell for much less than other houses simply because there is not enough loan to value ratio to make it a good deal. Banks like their loans to be insured for the top 20% of the loan. To get this you either pay a 20% down payment, PMI, or have a FHA/VA or other government insured program to cover that margin. The reason banks like to have that 20% is in the case of a foreclosure they should only have to sell the home at the 80% to recoup their costs. (I am horrible at explaining this so bear with me) So people that go into default within a few years of owning their home haven't had time to build a lot of equity in the home to make the foreclosure a "bargain" price. But people who have been able to pay off a significant amount of their mortgage and then have come under financial distress (loss of job, illness and such) will have a less of a loan amount remaining for the bank to collect. Does that make sense? Okay, say these people have paid $100,000 for their home originally. They live there for long enough to pay that down to $50,000. They then get a second mortgage for another $50,000 with a different lender. Then they begin to default and go into foreclosure. The first bank will only need about $50,000 to recoup their cost. So if they can only sell it for that amount, they will more than likely take it. Second bank will be S.O.L. They usually just eat the $50,000. Which is part of the reason our sub-prime is in a toilet right now.
Thanks for the info guys, I will take a look in that other forum.
With respect to some of you comments - GLS's inparticular......it seems that some issues are local, for example I don't think MT will see concentrated inner city type sections with large foreclosure rates, because are cities don't have that type of makeup. Which is kind of my point, what's it like in Montana. Some local forclosuer I've heard seem to nicer homes in nice neighborhoods or areas.
I could be wrong but I suspect the dynamics are different here than in say LA.
Also, an interest I had in buy a foreclosure won't be for investment, but rather residence.
If I went up to a realestate agent and said I'd like to find a forecloser hoping to pick up a bargin.......what do you think his reaction would be ? Would he be thinking "why should I do that for you, if it's a bargin, I get it for myself", I have no clue how that all works. Do agents just perfer or net even deal in forclosures for clients ?
I hear you JoeJoeMan. Missoula is significantly different than LA, and certainly rural Montana is a world unto itself. I check for homes available in Ronan, especially foreclosures, and the biggest difference is the small numbers compared to cities. However, my point was a general one. The PROCESS of buying a foreclosed home is similar and you need someone to show you the ins and outs no matter where you are. I think the guys on the real estate forum can give you some general caveats that you can apply to your specific situation in Montana.
I've read your posts enough to know that you're no huckleberry. Just protect yourself in the clinches and best of luck.
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