thoughts on buying foreclosures (Phoenix: short sales, real estate, mortgage)

[mamom1]

I would like some info on buying a house in foreclosure or a short sale. What are the pros/cons? I've searched the internet and found great prices on some homes but I've heard that most will need some "minor" work. I also heard that they take longer but I'm not looking to move out there until probably next spring. I would like to hear people's experiences.

[blueeyz911]

A short sale will usually take months to close or even just to get your offer accepted. We waited 6 weeks on our first offer which was a short sale and finally decided to move on. We then concentrated on bank foreclosures only. Most banks move fast and want to get rid of these houses. We had our offer accepted in 48 hours and closed in 3 weeks. It was a very positive experience for the most part and I highly recommend buying a foreclosure. If you are not planning to move until the Spring, a short sale may be good for you. You certainly can get some amazing deals on short sales right now.

As for the "fixer uppers" we saw a lot of atrocious houses where people trashed the floors, walls, tore out all appliances, cabinets, counter tops. We just walked in and out in disgust. In order for FHA financing, there must be a stove/oven in the home. A lot of foreclosures do not have stove/ovens so we decided to pass those up. Of course, if you really love the house, you can buy your own stove and have it in before the appraisal. Fixer uppers are fine for some people but we preferred a house that was pretty much move in ready (not all people that lose their homes are savage animals).

Good luck in your search.

[lildevil01]

I am currently buying a foreclosure my closing date has been changed 4 times by the Seller ( bank ) Nothing but problems so far . Treind to get a home inspection done we were told the power was on sent an inspector 2 times both times power was not on . The 3rd time we were told it was on I went over to confirm and SRP was there they told me the told the realtor it could be turned on till the power panel was fixed . Realtor told us panel had been fixed my and electrician I told them I was just there nothing had been done. No I was supposed to close that 22nd that fell thru cause there was a newgas water heater in the garage it wasn`t properly vented again that info was not disclosed yet another delay. I am sure not all properties are like this but this one has been hell for me good price though. I sometimes think they are trying to back out of the deal cause of what I am paying and what they recently found out the home was appraised for ?

[aiwei]

Originally Posted by lildevil01

I sometimes think they are trying to back out of the deal cause of what I am paying and what they recently found out the home was appraised for ?

What does your Realtor say about all this?

[flmom28]

We buy foreclosures all the time. The length of time to close depends on if you are financing the home or paying cash. We always pay cash and then take out an equity loan on the home to recover the the money paid. The last foreclosure we closed on in less than 2 weeks, also depends on the motivation of the banks too though. If they are going to be at a tremendous loss they usually don't move as quickly. One thing that we have experienced with buying there properties is that when it comes inspection time, the banks are not willing to fix anything. All homes he in Florida come as is, but we have never really had to invest too much beyond the price of the home. All the cosmetic stuff is up to you depending on how much money you want to make off the home.

[altus2006]

There is an auction coming up on the 14th of this month for new homes by Trend. In order to see the list of homes one has to fill out the form and I did, which resulted in me getting a phone call yesterday.

I learned that the houses can be financed and that a couple of mortgage firms will be on site at the time of auction. Also, a warranty is available since this builder is now bankrupt and a "normal" builder home warranty is not in the picture.

Also, the girl told me that the highest bid will get the house, so there is no reserve. It might be a place to go and watch and decide if an auction is your cup of tea. At least these homes are new home models, so there will not be any fix up problems.

If you hunt for Kennedy Wilson auction, you will find the site.

altus2006

[lildevil01]

Originally Posted by aiwei

What does your Realtor say about all this?

For some reason there is 2 realtors . The one I saw it listed with and contacted he is the one i`m dealing with then there is another realtor that is I guess the listing agent for the bank. One evening when I was there I saw a man there trying to get into the house he asked me if I had the code I told him yes. He said will you let me in I said no because there was an offer on the home at this time but did not tell him I was the buyer. He said he was told the home was still available this was just before my 1st closing date . My realtor claims the other realtor has to many houses listed to take care of them all.

[Howard Roark]

The Cons of buying foreclousures today are that you may be one of those trying to catch a falling knife.

1.4 million option ARMs will reset in 2011 and 2012. Most of them in California. How many in Phoenix? I don't know. However many Californians specuvested in Phoenix homes and will have to let their least favorite holdings go first. Some of them could be the Phoenix houses. It could be the second round of major price cuts.

Got T-bills?

[aiwei]

Originally Posted by lildevil01

The one I saw it listed with and contacted he is the one i`m dealing with then there is another realtor that is I guess the listing agent for the bank.

I thought there is one listing agent per property. How could there be 2? If a transaction occurs, who gets the commission then? Do they split it?

I definitely will ask a lot of questions to establish who the listing agent is. Especially it sounds like you would like the listing agent be your (the buyer's) agent also.

[tripper76]

I have been in the process of buying a foreclosure four about a month. My closing date is mid Sept. Its been slow as hell for me but I was in no hurry anyway. I am an owner/occupant, not a real estate investor with all cash or using hard money. Things are different depending on what you are.

I have looked at a lot of homes. Finding a move in ready foreclosure is damn near impossible. At the very least, expect to replace the carpet/paint and some/all appliances. In mine, the previous owner took all the cabinet knobs and outlet face plates. It looks like someone changed their car oil in the living room. And the house smells like a dog pound. And this was the good house that I made an offer on. The rest were much worse. Maybe those 300k plus foreclosures are in better condition. My range was more like 130k.