I am thinking about buying a foreclosure house...

here is what the one I want has going on.. for $5000
Basement foundation wall damaged and all copper removed (yes, electric and water is gone) drywall and windows damaged throughout.
 

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Like buying any house:
1. make sure to get the house inspected with a house inspector you trust to tell you everything, like termites, water damage, state of the plumbing and electric etc.
2. Don't worry about the color of the walls or the carpet on the floor. That is easy and relatively cheap to correct.
3. Worry about the kitchen and bathroom. Kitchens especially cost a lot of money to change or fix. Bathrooms can cost a lot too.

A person I know lives in a foreclosed house.
It belonged to someone who went to jail...
I was worried about that at first (what if the person gets out of jail and comes back to the house?) but she seems totally fine with it. Also she replaced all the doors with modern, fire-rated ones.
 
You should try to find out some history about the house . I just heard on the news someone brought a house and was used as a drug lab and the owners where getting sick . I know of only one person that brought a foreclosure house and the guy owned his own construction company and knew how to fix everything. If you do not know how to work on a house and do not have a lot of money to made repairs it could be very a risky move.
 
whatdidyousay! said:
You should try to find out some history about the house . I just heard on the news someone brought a house and was used as a drug lab and the owners where getting sick . I know of only one person that brought a foreclosure house and the guy owned his own construction company and knew how to fix everything. If you do not know how to work on a house and do not have a lot of money to made repairs it could be very a risky move.
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That should be standard for any place you're considering buying or renting. Bug problems, police issues (meth lab, drug house, neighbor issues), health problems (mold, rodants), etc. Any time you're putting money down, make sure there's no surprises....

Laura
 
Serious foundation repair is required. For $5K, depending on factor like size of land. Where the neighborhood. If it is Inner city forget it if it is country or suburban then maybe its good deal.

So without these information I can't really answer that question.
 
Its in town just at the border of being in farmland, I can go less than 2 miles in any direction and be at any store/hardware/restraunt/movies/ect..... The house is 3 beds, 1-1/2 baths all rooms are large 13x15, 15x15, 13x19...ect...on just shy of an acre lot, last selling price of this house in 2009 was $109K and in bad shape then ( basic maintenance and land needs clearing ) House was built in 1925 and had additions added onto it sometimes way back when, it is 13,000+ sqft in the house alone.
 
sonocativo said:
Its in town just at the border of being in farmland, I can go less than 2 miles in any direction and be at any store/hardware/restraunt/movies/ect..... The house is 3 beds, 1-1/2 baths all rooms are large 13x15, 15x15, 13x19...ect...on just shy of an acre lot, last selling price of this house in 2009 was $109K and in bad shape then ( basic maintenance and land needs clearing ) House was built in 1925 and had additions added onto it sometimes way back when, it is 13,000+ sqft in the house alone.
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Sounds like a good deal with lots of work but could be great results--13,000 sq.ft. is a mansion!

I hope you're handy with tools and DIY skills! :giggle:
 
Reba said:
Sounds like a good deal with lots of work but could be great results--13,000 sq.ft. is a mansion!

I hope you're handy with tools and DIY skills! :giggle:
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I wish I could find the before and after of the 2 houses I did before, youd be amazed what I can do. Sometimes I amaze myself.
 
Foreclosure houses are often sold on AUCTION, or to the highest offer
so contrary to what you may hope it may end up at the quite high price.

Like someone said before, read the FINE PRINT plus educate yourself well
on what ground the house is being sold for- for example, are there other expenses involved with the house? is the house occupied? are there some back taxes or rent owned you end up paying for etc etc

Buying Foreclosures - The Drawbacks to Buying Foreclosures
The Truth About Buying Foreclosures and Short Sales | Work It, Mom!

now, knowing this, before you buy you need to check check check if the house you intend to buy is actually safe to buy on all fronts and profitable for you.

Would I buy a foreclosure? Oh sure, after checking it thoroughly out, People DO make money on buying, fixing up and selling them.
But you must learn how to do it safely and smartly.

Fuzzy
 
Here is the issue with the one Im trying for. Guy called yesterday and said all paperwork looks good to go, so its down to the last minute number crunching.
Banks foreclosed on the house, had to go to court numberous times to get the dierlict owner out...finally did after he tore it all to hell. Here is what I found out.
Went to police department and did a background, no illegal activities or drug labs, GOOD. There was a letter in the mailbox so I wrote the name down and did a case search on it... Turned out the guy bought several houses in Missouri and Illinois under a false social security number and was a convict caught with a firearm in his posession. So, he had alot of fake paperwork done to get the houses but it caught up to him very quickly. Since the house was and is tore to hell the bank couldnt sell it as I looked at it when it was still in the $50K's but quickly dropped 25, 19, 15k then it went off the market, I thought someone got it, NOPE, next thing I knew, I drove over there a few weeks later and there just signs for sale, turned out and invester bought it as the bank was losing its ass on the property, and slapped it down for a quick sale and I jumped on it as it is nice just some bad damage that needs addressed immediately ( foundation and windows ) the rest is simple.
 
Lau2046 said:
That should be standard for any place you're considering buying or renting. Bug problems, police issues (meth lab, drug house, neighbor issues), health problems (mold, rodants), etc. Any time you're putting money down, make sure there's no surprises....

Laura
Click to expand...

I know that but most foreclose houses are sold through an auction and you can't go inside to check it out. , you're buying the house 'as is'. So you have to do some leg work and find out on your the history of the house. The people I know that brought a foreclose house got by an auction but the guy knew how to fix houses and was able to do all the work . Buying a foreclose house is not the same as buying one through a realtor agent.
 
Audiofuzzy said:
Foreclosure houses are often sold on AUCTION, or to the highest offer
so contrary to what you may hope it may end up at the quite high price.

Like someone said before, read the FINE PRINT plus educate yourself well
on what ground the house is being sold for- for example, are there other expenses involved with the house? is the house occupied? are there some back taxes or rent owned you end up paying for etc etc

Buying Foreclosures - The Drawbacks to Buying Foreclosures
The Truth About Buying Foreclosures and Short Sales | Work It, Mom!

now, knowing this, before you buy you need to check check check if the house you intend to buy is actually safe to buy on all fronts and profitable for you.

Would I buy a foreclosure? Oh sure, after checking it thoroughly out, People DO make money on buying, fixing up and selling them.
But you must learn how to do it safely and smartly.

Fuzzy
Click to expand...
I agree , you really need to check the history of the house , and if you do not know how to work on a house and made majors repairs it will cost a pretty penny to have the work done. If you do the work yourself you to have a license to do the plumbing, and electric ,and all the work has to be check by the city or town building inspector.
 
Buffalo said:
Yikes, I didn't know that! Good thing I started this thread.

Edit: Do you mean it is already included in the price of the house or it is addition to the price of the house?
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I would talk to a realtor lawyer so they can advise on what you'll be getting into . Every state may have their way of selling foreclosure houses. This is one time you do not want to sign on the dotted line until you really understand what you're agreeing to. It think it would wise to spend money for a lawyer , it could save you thousands of $$$ in the long run.
 
Sounded good deal, land itself holds the most value so your pretty much close to what land itself worth. Having a house already built is just a bonus, whether it is out of shape or not.

sonocativo said:
Its in town just at the border of being in farmland, I can go less than 2 miles in any direction and be at any store/hardware/restraunt/movies/ect..... The house is 3 beds, 1-1/2 baths all rooms are large 13x15, 15x15, 13x19...ect...on just shy of an acre lot, last selling price of this house in 2009 was $109K and in bad shape then ( basic maintenance and land needs clearing ) House was built in 1925 and had additions added onto it sometimes way back when, it is 13,000+ sqft in the house alone.
Click to expand...
 
whatdidyousay! said:
I agree , you really need to check the history of the house , and if you do not know how to work on a house and made majors repairs it will cost a pretty penny to have the work done. If you do the work yourself you to have a license to do the plumbing, and electric ,and all the work has to be check by the city or town building inspector.
Click to expand...

I dont have a license for plumbing and electrical but I have the working knowledge of it. I completely rewired/replumbed my houses and installed extra full baths as well ( even installed a full bath here at my current wifes house in the basement with 2 beds and a family/game room so its a finnished lower level) When selling the inspectors will check everything and if it passes, no propblems, if it dont then you have a problem because at that point it will have to be done by a licensed electrician/Plumber. I have even converted all electric to gas as well, never an issue if you know what you are doing or know someone who does. Laws vary state to state/city to city, just check to be sure.
 
Same thing here.

sonocativo said:
I dont have a license for plumbing and electrical but I have the working knowledge of it. I completely rewired/replumbed my houses and installed extra full baths as well ( even installed a full bath here at my current wifes house in the basement with 2 beds and a family/game room so its a finnished lower level) When selling the inspectors will check everything and if it passes, no propblems, if it dont then you have a problem because at that point it will have to be done by a licensed electrician/Plumber. I have even converted all electric to gas as well, never an issue if you know what you are doing or know someone who does. Laws vary state to state/city to city, just check to be sure.
Click to expand...
 
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