Buying A Previously Foreclosed home.
#1
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From: Banned Scammer The Pat WS6
Buying A Previously Foreclosed home.
Does any one know on the stipulations on these? i have a realtor saying that the goverment pays the 3% on the new home and not much would have to go down on the house itself. Plus the first time home buyer gets the 8k until the 30th of April. Does anyone have experience on HUD homes?
We were looking at this compared to renting from a landlord or someone else.
Thanks
We were looking at this compared to renting from a landlord or someone else.
Thanks
#2
The foreclosed homes dont qualify for a lot of items. I'd double check before you buy. I'm not sure about a "previous" one though... Typically they tend to have lots of issues that get expensive quick, turns into a money pit.
#3
A lot of it is case by case. Expect it to need work. My wife and I looked at a few before our current purchase and we found one thing to be consistant. When the bank takes over, they turn off all utilities. Leaving a house vacant without A/C in this climate breeds mold.
#5
There are horror stories that some people have dumped expoxy down the toilet, and to get it out you have to rip the whole slab out. Most of them you can't get home warranty on so that stinks. It's the hidden stuff that runs the issue.
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#9
What do you mean by "previously foreclosed home?" Are you referring to a HUD owned property that has been foreclosed on? HUD owned homes are foreclosures.
As for your down payment, a realtor, or Google, can show you a HUD form. Where as in buying from another individual you can negotiate to split some costs, HUD differs. Hopefully someone can help you here; I had a VA loan, so my cost allocation was different. Take advantage of the realtor, ask a ton of questions and get him/her to do some homework for you. Ask to see or fill some sample forms that you will need to submit for a HUD home. Seller pays their 3%, so you are not losing by using them. And don’t worry about the first-time home buyer's credit, the act does not restrict to who the property has to be purchased from. Your income does affect the credit amount though.
A few notes for you:
HUD homes are difficult and risky to purchase. As stated above, people have come up with some nasty things to ruin a home before they get booted. Difficult to purchase because generally they sell for what is owed not the value; therefore, a lot of people, including investors jump on them.
I purchased a HUD home back in June, but wasn't particularly looking for a foreclosure. This was the sixth home I had put an offer on, the second foreclosure. I lost the first HUD/foreclosure because my offer was for the amount of the home and I paying closing...that was not even close to the value of the home. It sold for $18k more than my offer. So, on my current home I offered $16k over asking and $5k towards closing. Not saying this will happen to you, but point here is that if you decide to make an offer on a HUD home, take the value into consideration.
My personal advice from experience with buying a HUD home is that you have all your ducks in a row before even looking. HUD homes are usually not up for sale long. They pretty much advertise the home for (x) amount of days and put a deadline on offers, i.e. midnight on Dec 15, 2009. The best offer to come in at that point will get the home. This is why I say to have everything prepared. You want everything lined up because if you find a great home at the price you want, it will blow to find out you can’t put in an offer because you were missing something.
Just do your homework, everyone's situation is different. Also, if the foreclosed home gives you a bad gut feeling, you might want to go with that!
As for your down payment, a realtor, or Google, can show you a HUD form. Where as in buying from another individual you can negotiate to split some costs, HUD differs. Hopefully someone can help you here; I had a VA loan, so my cost allocation was different. Take advantage of the realtor, ask a ton of questions and get him/her to do some homework for you. Ask to see or fill some sample forms that you will need to submit for a HUD home. Seller pays their 3%, so you are not losing by using them. And don’t worry about the first-time home buyer's credit, the act does not restrict to who the property has to be purchased from. Your income does affect the credit amount though.
A few notes for you:
HUD homes are difficult and risky to purchase. As stated above, people have come up with some nasty things to ruin a home before they get booted. Difficult to purchase because generally they sell for what is owed not the value; therefore, a lot of people, including investors jump on them.
I purchased a HUD home back in June, but wasn't particularly looking for a foreclosure. This was the sixth home I had put an offer on, the second foreclosure. I lost the first HUD/foreclosure because my offer was for the amount of the home and I paying closing...that was not even close to the value of the home. It sold for $18k more than my offer. So, on my current home I offered $16k over asking and $5k towards closing. Not saying this will happen to you, but point here is that if you decide to make an offer on a HUD home, take the value into consideration.
My personal advice from experience with buying a HUD home is that you have all your ducks in a row before even looking. HUD homes are usually not up for sale long. They pretty much advertise the home for (x) amount of days and put a deadline on offers, i.e. midnight on Dec 15, 2009. The best offer to come in at that point will get the home. This is why I say to have everything prepared. You want everything lined up because if you find a great home at the price you want, it will blow to find out you can’t put in an offer because you were missing something.
Just do your homework, everyone's situation is different. Also, if the foreclosed home gives you a bad gut feeling, you might want to go with that!
#10
fannie may or freddie mac(goverment hud programs) should pay the 6% sellers concessions for you but usually only pay up to 6995.00 to closing cost. you can agree to a home warranty that last a year but of course cost a little extra. my closing cost was about 8500.00 dollars so i had to go to the closing table with about 1500 dollars to close. fannie may payed the 6995.00.
you have to pay for an appraisal out of pocket(they range from 300-500 dollars typically). i would highly recommend you get a inspector to go thru EVERYTHING on the house and even more recommend you be there with him/her when the inspect the house. i bought this house with i bid at 110k. after the 6% sellers concessions(i went with a usda first time home buyer loan) the total being borrowed was 116,600.00, the house appraised for 143,200.00. and i had to pay that 400 for appraisal and 1500.00 for the rest of the closing cost. that was pretty much it. i also get the 8k too. its 10% up to 8k I.E. 80k dollar home. 80k-200k you still get only 8k dollars
#11
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#13
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From: Banned Scammer The Pat WS6
yes im talkin about hud homes, i will get the house throughly inspected for damages...
i hear there is a bidding process that goes throught when you put ur price in. so hopefully no one elses bids but i see where the catch is coming from.
thanks for your help tho guys i appreciate it. does anyone actually live in one?
i hear there is a bidding process that goes throught when you put ur price in. so hopefully no one elses bids but i see where the catch is coming from.
thanks for your help tho guys i appreciate it. does anyone actually live in one?
#15
Find out how long it has been since auctioned and reason for foreclosure. The foreclosed owner may have x years for a guaranteed buyback (making you homeless) by law.
If it is a recent foreclosure you can probably find a better deal buying a house from someone ABOUT to foreclose, especially tax foreclosures.
If it is a recent foreclosure you can probably find a better deal buying a house from someone ABOUT to foreclose, especially tax foreclosures.
#16
yes im talkin about hud homes, i will get the house throughly inspected for damages...
i hear there is a bidding process that goes throught when you put ur price in. so hopefully no one elses bids but i see where the catch is coming from.
thanks for your help tho guys i appreciate it. does anyone actually live in one?
i hear there is a bidding process that goes throught when you put ur price in. so hopefully no one elses bids but i see where the catch is coming from.
thanks for your help tho guys i appreciate it. does anyone actually live in one?
#17
Dont assume all foreclosed homes have problems. In a normal economy alot of foreclosures have problems because over the time people can not afford the up keep. In todays economy people are loosing large homes and having to get out quick not allowing the time for the up keep to go bad. I know of alot of foreclosures in my area that have zero problems. Dont be scared to buy a home that has been foreclosed on. You will have to have it inspected anyways so the inspecter should catch most of the problems.
#18
not 100% on this, but i heard that the $8,000 tax credit ends november 31st. i heard there was talks of extending it, but supposedly nothing has went through yet. this coming from my finance guy. im actually closing on my first home next wednesday. one thing to maybe look into, im getting my home, built brand new, which qualifies me for this DAP program.
its a down payment assistance program that is giving me 14k towards the down payment and closing costs of my home. pretty much all i had to come out of pocket was $1000 for earnest money and $456 bucks for the appraisal fee. the main thing i had trouble with getting approved for this DAP program was you cant make over 35k a year. so i had to stop working any overtime for the past 3 months. but i got approved, so now i can start working all my overtime again. hope this helps
and on the foreclosed homes, from the 15 i checked out before buying a new home, they were really not worth it. most of the previous owners attitudes seemed to be, "well there going to take my home, might as well do as much damage as possible before they take it" so purchase with caution
its a down payment assistance program that is giving me 14k towards the down payment and closing costs of my home. pretty much all i had to come out of pocket was $1000 for earnest money and $456 bucks for the appraisal fee. the main thing i had trouble with getting approved for this DAP program was you cant make over 35k a year. so i had to stop working any overtime for the past 3 months. but i got approved, so now i can start working all my overtime again. hope this helps
and on the foreclosed homes, from the 15 i checked out before buying a new home, they were really not worth it. most of the previous owners attitudes seemed to be, "well there going to take my home, might as well do as much damage as possible before they take it" so purchase with caution
#19
Yes the 10% tax credit program has been extended through next Spring. Be careful playing the income cutoff game. If you are audited the IRS may retract their credit leaving you with fines and penalties.
#20
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From: Banned Scammer The Pat WS6
ya it got extended till april 31st i know this for a fact..
anyways we have a home inspector in our immediately family so no worries there. my only concered is being out bid in the waiting period before the bids end. i would love to be a home owner at the age of 21.
anyways we have a home inspector in our immediately family so no worries there. my only concered is being out bid in the waiting period before the bids end. i would love to be a home owner at the age of 21.