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I discovered a new function on Google Maps...you can search for homes listed for sale by area. Very interesting (and gives you a different variety than other sites...but I still wish I could find a real estate search site i LOVED for my window shopping)
Anyway, one of the options you can select is foreclosures...and I was stunned at the number available in Cary. Do those show up on the regular listings? Like if I'm searching any other realty website are those going to be included? ARe they marked in some way I should know about?
And is there a reason to stay away from them? It seems that someones loss could be my gain.
I looked at foreclosures for a little while. I found that most of the information online is out of date and misleading. "Foreclosure" is a very broad term used to describe many different scenarios. For instance, a bank may have initiated proceedings to foreclose but this does not mean the house is on the market.
Another drawback - you may not be able to get inside the house before buying - hopefully the windows are clean! Also, it may be difficult to determine who has a lien on the property.
Still, lots of people are successfully buying foreclosures, so it can't be that hard. I would recommend having a savvy realtor at my side throughout the process. You can also look at bank websites and Fannie Mae and Freddy Mac - they list lots of homes that they have bought back. Not many in Cary though.
I looked at foreclosures for a little while. I found that most of the information online is out of date and misleading. "Foreclosure" is a very broad term used to describe many different scenarios. For instance, a bank may have initiated proceedings to foreclose but this does not mean the house is on the market.
Another drawback - you may not be able to get inside the house before buying - hopefully the windows are clean! Also, it may be difficult to determine who has a lien on the property.
Still, lots of people are successfully buying foreclosures, so it can't be that hard. I would recommend having a savvy realtor at my side throughout the process. You can also look at bank websites and Fannie Mae and Freddy Mac - they list lots of homes that they have bought back. Not many in Cary though.
You are dead right.
There is no good definition or discipline in the use of "foreclosure," or "pre-foreclosure," and people are mislead routinely.
Sites where people pay to view "foreclosures" are typically wildly inaccurate.
But, if a home is listed for sale on the MLS, foreclosure or not, you should have assurance of receiving clear title.
The courthouse steps foreclosure auction is reminiscent of the Wild West, where the sellers make no such assurances.
Slapping "foreclosure" on a listing is the easiest way to sell a property for more than its worth. People will buy it assuming it's a good deal being it's a foreclosure.
FWIW the true investors buy them before they hit the market. They search the tax records daily and look for properties that have just been registered in banks names. Then he goes and looks at them on his own - no realtor involved. I know someone who bought a 4-plex for under 80k and after accounting for a 50% expense ratio makes $1200/month.
Another way to buy them is in a short sale, again before it ever hits the market. By the time the property has hit the MLS they are generally at retail value or slightly below accounting for all the work that needs to be done.
To answer your question the foreclosures on the MLS are apparent. There is some special language used. One way to find only foreclosures is to find a Realtor who lists them for the banks - I'm not familiar with any here (not looking) but in Virginia Beach I knew a hand full who got a majority of the bank listings. These are known as REO's.
Thanks to all! I will stick with the website I had been using (provided by a realtor in Cary who shall remain nameless) and ignore those 'foreclosure websites.
Slapping "foreclosure" on a listing is the easiest way to sell a property for more than its worth. People will buy it assuming it's a good deal being it's a foreclosure.
FWIW the true investors buy them before they hit the market. They search the tax records daily and look for properties that have just been registered in banks names. Then he goes and looks at them on his own - no realtor involved. I know someone who bought a 4-plex for under 80k and after accounting for a 50% expense ratio makes $1200/month.
Another way to buy them is in a short sale, again before it ever hits the market. By the time the property has hit the MLS they are generally at retail value or slightly below accounting for all the work that needs to be done.
To answer your question the foreclosures on the MLS are apparent. There is some special language used. One way to find only foreclosures is to find a Realtor who lists them for the banks - I'm not familiar with any here (not looking) but in Virginia Beach I knew a hand full who got a majority of the bank listings. These are known as REO's.
There are many Realtors who list foreclosure and general brokerage listings, so it is difficult to find them only by looking at an agent's listings.
Also, there are many REOs on the MLS that are not apparent.
There is no requirement on the Triangle MLS to note a property as a foreclosure or REO.
Foreclosure prices can look good, but the houses can be a mess. People tend to take everything that might have value. Not just the washer and dryer, but sometimes even the kitchen cabinets and the toilets. In my neighborhood (150 miles from the Triangle right now) someone took the mailbox when they left. Then they came back and took front and back steps and porch/deck (small wood porch and deck on a newish mobile home). They also either took or sabatoged the heat pump.
Some good friends of mine recently closed on a foreclosure home in Falls River for about 100k under the appraised value. It's a fabulous home and was in great shape! I think it is easier to find these deals in the upper price ranges as the lower priced homes get snapped up quickly.
There is no need to pay for a foreclosure list as they are public record and very easy to find. The lists that I have seen people pay for have mostly out of date information.
Foreclosures are not that difficult to purchase and close. They are very similar to buying any type of real estate. Short Sales are almost impossible to close.
Some homeowners do go through the house and destroy it out of anger. Some do not.
You can get an inspection but the bank may or may not do any repairs. Most addendums will let you out of your contract if you are not happy with the results of the inspection.
Vicki
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