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Boardwalk :: Forum List Tax Liens General Discussion
ChrisH
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 Buying Foreclosed Homes - 2007/02/11 18:11 I am in the process of looking to buy my first home. I have seen, and heard that foreclosures are an excellent way to get great deals on homes. I'm surprised more people do not do it.

My question is in regards to the prices listed for homes on this site, and the realistic expectation to purchase the homes for those prices.

I've seen homes in areas I am interested in, that are worth $300K, but are listed at $130K on this site. I've even seen homes worth as much as $500-$700K, listed on this website at $1,000. Are these banks, etc., that desperate to get rid of these homes, that they will sale the for that cheap? How realistic is it, to call the bank, or whoever is selling the home, tell them you are interested in a home at 'X' address, that is on foreclosure, for 'X' price, tell them you are ready to buy, and realistically buy it at the price listed?

Thanks.
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jardhead
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 Re:Buying Foreclosed Homes - 2007/02/11 22:08 My question is in regards to the prices listed for homes on this site, and the realistic expectation to purchase the homes for those prices.

You never know unless you try. The majority of tax liens are paid off by the mortgage companies giving you a quick return. But for taking over properties, it is very hard especially when a lender is involved. Try looking for a property that doesn't have a lender.

Reference: Complete Guide to Real Estate

Post edited by: Luanne, at: 2007/02/12 13:09
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Luanne
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 Re:Buying Foreclosed Homes - 2007/02/12 14:18 Hi Chris,

Thanks for the post. You have some great questions. First be sure that you differentiate between the foreclosures and those properties with tax liens. They are two very different categories with two very different processes to acquire them.

The foreclosures: Yes, these are realistic prices. The lender only wants to recoup the amount of the mortgage. This price could be much less than market value- one reason for all the allure in foreclosure investing. Once you identify the contact (the lender), you will go directly through them to discuss the transaction.

Tax Liens: The home you saw listed for $1000 worth $500K is most likely under the tax lien property category. This means that you can purchase the tax lien for $1000 not the property. If this property would however go to a tax DEED auction then the bidding would start at $1000 and most like increase relative to its actual value.

Hope this helps.

Thanks,

Luanne
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Boardwalk :: Forum List Tax Liens General Discussion

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