New House (Houston, Pearland, Humble: for sale, real estate, foreclosures)

[FancyLacey]

I have two friends from back up North who are looking to move to the Houston area to retire soon. They grew up in the quiet country side and love that environment, and they are hoping of moving somewhere with a vibe similar to that, where they can raise a few chickens (as pets). However, they are also open to living in the city if the house feels worth it. And really, I don't think they want to be too far of a drive from the city anyway.

They are looking to pay no more than $150,000 for a house, ideally less than that. Now, keep in mind they do not plan on having a mortgage and plan on paying this fee directly up front so that they may own their home immediately. The sooner they find a house, the better. They believe if they find maybe a foreclosure for around $200,000 they can offer $150,000 and it may go over well, since they are paying it all up front in total.

What areas do you guys recommend? I have been trying to help them, but it's hard finding a house for that price in a safe and good area.

[FancyLacey]

Zip codes would be very helpful too, since it's a little easier to search for homes for sale with a zip code.

[FancyLacey]

:-)

[City Love]

It will be kind of hard finding something for $150k in the city if they are use to open space. I think one of the many suburbs will fit them well. Relatively close to the city and yet safe with newer homes. $150k will get them into areas like Katy, Sugarland, Pearland, Humble, and a few mores. Watch out for HOA's though if your friends want to have chickens. Some might not allow them.

Visit HAR.com : Houston Real estate, Houston homes, Houston Realtors, TX Homes and type in those cities into the search field.

Regarding the foreclosure option, it will be hard to find a $200k home for $150k even if purchasing cash. Unless the home needs a lot of work, most banks won't cave in that much just because of a cash offer. Financed or cash, the bank still gets paid. Likely more with a financed offer, so if the home is in good shape, they will wait for that. If the home needs a lot of work, then a cash offer could sway them.

Good luck!

[cheryjohns]

Other areas could include Magnolia to the north of Houston - and Rosenburg and Richmond to the south.

Agree that cash doesn't mean anything on any offer. The seller (bank or individual) gets paid at the closing table. Foreclosures are already priced under market and according to condition (usually) - so they don't go much under list price. They don't have to - investors are fighting over the ones in decent areas.

[IC_deLight]

Originally Posted by FancyLacey

I have two friends from back up North who are looking to move to the Houston area to retire soon. They grew up in the quiet country side and love that environment, and they are hoping of moving somewhere with a vibe similar to that, where they can raise a few chickens (as pets). However, they are also open to living in the city if the house feels worth it. And really, I don't think they want to be too far of a drive from the city anyway.

They are looking to pay no more than $150,000 for a house, ideally less than that. Now, keep in mind they do not plan on having a mortgage and plan on paying this fee directly up front so that they may own their home immediately. The sooner they find a house, the better. They believe if they find maybe a foreclosure for around $200,000 they can offer $150,000 and it may go over well, since they are paying it all up front in total.

What areas do you guys recommend? I have been trying to help them, but it's hard finding a house for that price in a safe and good area.

If by "fee" you mean the sales price, that really isn't going to make a difference since the seller isn't going to care if the money at closing comes from a bank or your friends.

There is a huge risk for your friends, however, if they purchase an HOA-burdened home and have a large amount of equity in it. HOA vendors target homeowners with large amounts of equity for foreclosure actions. Typically this is used as leverage to get junk fees from the homeowners to these vendors in order to call off the foreclosure. If your friends are purchasing HOA-burdened property they should consider mortgaging as much of the property as possible to limit what they will lose with the HOA property (and thus avoid being a target by the vendors as well).

Another problem with HOA-burdened properties is the perpetual, ever-increasing assessments your friends would be obligated to pay. The HOA vendors have gotten creative about demanding all sorts of other fees on your home for their benefit (e.g., transfer fees, resale certificate fees, community enhancement fees, certificate of compliance fees, etc., etc., etc.). These fees can all be avoided if you avoid HOA-burdened property to begin with.