What Should We Look for in Foreclosed Homes?

[DessertDivaFL]

Hello fellow cheffers! It is getting closer and closer to my marriage (3 months). My fiance and I decided to start house hunting in our area because the house prices are really low and we don't think this will last much longer. This will be my first home purchase.

We are looking for homes that had went into forclosure and are owed by the banks. Right now, we can get a newer 3 Bed 2 Bath with around 1600 sq/ft for around $100k. :love:

Does anyone have any advice for me? Anything we should be looking for? Any hidden things? I appreciate any advice. Thank you so much!

 

[lacychef]

Don't really have tons of advice for you....but wanted to say good luck & congrats on the upcoming new purchase & the wedding
We bought our current house a little over a year ago. I guess just make sure to have a whole-house inspection done; that can catch little (or big) things that need fixed.....though with foreclosures I don't know how that all works...
Hope you find the home of your dreams! It's the best feeling to find "the" house!

 

[chefjeanine]

Location, location, location. Be sure to visit the home(s) you are considering at many different times of day and night. Stand outside (and inside) and listen. How loud is the traffic? Is the natural light up to your standards?

When you feel you've found THE place, get a home inspection.

Do you need lots of closet space? How do the rooms flow? Is there room for your stuff? How is the parking. . .not just for you but for visitors too?

How long do you think you'll be in this house? DH and I are in our early 40's but the next house we purchase may be our last so we'll be looking at a ranch style rather than a two-story like we have now.

Go and see lots of houses!

Congrats on your upcoming marriage. This is a great time to be a home buyer!! Good luck.

 

[Kitchen2u]

When you do your walk through (purchased home) bring a nightlight with you. Plug it into EVERY outlet you can find. Also bring an extra light bulb...just in case one is burnt out...you need to know if the thing is working. I brought a hair dryer and curling iron to my friend's walk through...found out pluggin' both in constantly blew the circuit..uhh, fix it buddy!

Also, turn on the air conditioner and let it run for a while...also the same with the heater ~ dish washer (looking for leaks), run the water in all faucets, tubs/showers...you find if you're going to have a drainage problem. LOTS of people do nt run their dishwasher monthly...recommended...if they don't the rubber seal, dries/cracks, creating leaks when you run it. Ovens, built in mircrowaves and any other built-in appliance...house alarms ~ get my drift? Outside water sprinkler systems too! Inspect linoleum around the kitchen sink and toilets...if you see discoloration...there's probably a water leak.


Take measurements of rooms and door ways...is your furniture going to it? Are there narrow entrances? If you are buying new furniture...it's nice to know what can go where. Take a blank piece of paper for each room...draw a room sketch with the elelctric outlet placements.

Visit the house you're thinking of morning, afternoon and night...it's nice to see what "happens" ~ traffic, outdoor activity, loud neighbors, etc.

Knock on some neighbors' doors...talk to them, ask them about the neighborhood ~ you can get a good feel on what your future neighbors are like on this first meeting.

What do the neighbor's yards look like? Are you willing to live with it?

I probably could go on...just mentioning from my experience (and friends')...28 years!

 

[Kitchen2u]

Remember ~ an EMPTY house always looks a LOT bigger than it really is!

 

[lockhartkitchen]

Foreclosure homes are a little different on the process. We found this out a few months ago. It can take 3 months for the banks to even come back and accept your offer. We put our house hunting on hold then they took someone else's offer. Definitely a home inspection. Do not take their word that they have done one. Mold can be detected from an expert home inspector. Go for it!

 

[janetupnorth]

Congratulations and good luck!No advice here, since real estate is not my forte...

Spoiler

Don't be surprised, I have to suck at and not help with something.

 

[pampered.chris]

My main peice of advice is HIRE AN INSPECTOR!!!!! Don't skimp on this one. It is TOO important. Find someone that has references. And find out from those references if they are any good at what they do!!

Here is why I am so particular about this...I am a single young mom. I was house hunting and kept comparing each house to one a friend owned. Found out the friends house was for sale, everything about the house I was in LOVE with!!! I hired an inspector. He noted a few things and said some things needed replaced. Noticed a shift in the foundation wall but said, "There is nothing to be concerned about, the inside is fine". That was in February 07.

On April first 07 I closed on my house and the next day my parents came over to my new place and were helping me paint and do some little things that I wanted done before the following w/end when I was moving in. My dad yells to me from the basement. I get down there...and he looks at me almost w/ tears in his eyes and says, "I am so sorry I didn't see this and stop you"...the basement wall was curved in over 2.5 feet, was an inch from the hot water tank, main gas line and furnace and electric breaker box. I had an inspection 2 mths prior...it looked NOTHING like this and I was told it was NOT an issue. To replace that wall it cost me over $5K that was the lowest bid received...the highest was over 11K!!!

Now that the wall is fixed and the house was raised over 6 inches in the center of that side there are cracks everywhere in the walls and I now have no equity in my home...(I also put on a new roof, insulated the attic and basement, put up rain gutters, did some other stuff).

It is so important that you hire a reputable inspector. We only had one in my area and I hired him. Don't skimp on this, it is worth your money.

OH yeah, and the "friends" I bought the house from knew the wall was like that, I guess during the winter it sucked the wall back in but then it thawed. I saw someone who had looked at buying my house the year before who told me the wall was like that when he looked at it. So it wasn't just a freak thing.

The other stuff everyone said is very true as well...make sure that you really like people if you are next door to neighbors...b/c you can't get them to move.

 

[Kitchen Diva]

Hello fellow cheffers! It is getting closer and closer to my marriage (3 months). My fiance and I decided to start house hunting in our area because the house prices are really low and we don't think this will last much longer. This will be my first home purchase.

We are looking for homes that had went into forclosure and are owed by the banks. Right now, we can get a newer 3 Bed 2 Bath with around 1600 sq/ft for around $100k. :love:

Does anyone have any advice for me? Anything we should be looking for? Any hidden things? I appreciate any advice. Thank you so much!

Make sure you have a real estate agent that specializes in foreclosed homes- also keep in mind that purchasing a foreclosed home takes a lot longer because the banks are so overwhelmed that the paperwork, inspections, appraisals, etc...take 3x as long as during a normal home sale.

I used to be a mortgage consultant, and also worked for two of the top foreclosure agents in our state...just make sure you go in with someone that knows foreclosures and all the different things that each state and county specifically requires once you buy one of those homes.

HTH- Happy hunting!!!

 

[legacypc46]

In some states, the owners have a time period during which they can reclaim the home...if it's already been 'sold' to someone else. The current issue of Consumers Report has a small, but informative, article on buying a foreclosed home.

 

[Humble Beginnings]

Make sure you have a real estate agent that specializes in foreclosed homes- also keep in mind that purchasing a foreclosed home takes a lot longer because the banks are so overwhelmed that the paperwork, inspections, appraisals, etc...take 3x as long as during a normal home sale.

I used to be a mortgage consultant, and also worked for two of the top foreclosure agents in our state...just make sure you go in with someone that knows foreclosures and all the different things that each state and county specifically requires once you buy one of those homes.

HTH- Happy hunting!!!

I agree, I'm currently a mortage consultant and buying a foreclosure home is alittle different. It is better if bank owned because at that point you may not have to worry about back unpaid taxes or other leins on the home. However, I've a few customers try and it really does take a long time. With all the foreclosures most banks do not have a process in place to take offers as quickly. Maybe this may change in the future considering more are going on the market everyday and it is only beneficial for a bank to want to unload. Either way work with a specialist in your area and definitly get a home inspection. Good luck!

 

[laurichef]

I agree w/ all of the above.
People being foreclosed on, do not always give up their house easily. My sister's house was a foreclosure, and the people wrecked the place on purpose.
I know of owners who knew the house was gong to the bank, so they took all the screens, light fixtures, pretty much anything that wasn't literally nailed down. Does not sound like a big deal until you have to replace all that stuff. It adds up quick.
So just beware of what you may be getting into.

Enjoy the search.

 

[DessertDivaFL]

These suggestions are great. We are not doing any SHORT SALES. Those are the homes that are still owned by the home owner and they are trying to save themselves from foreclosure. Our agent doesn't handle those. We are strictly looking at homes owned by the bank.

Yes, some of the ones we have briefly checked (looked in from the outside) do have some things missing (appliances, light fixtures, ceiling fans, etc). Some actually have everything still intact and are very clean.

Has anyone bought a foreclosed home recently?

 

[raebates]

I didn't take the time to carefully read all of the responses you've gotten, so this may repeat something. My suggestion is that you have someone you trust who is really good at home repair check it out thoroughly. (I'm assuming that wouldn't describe either you or your sweetie.) Someone who does a lot of repair knows what to look for to make sure nothing will need a major re-do in the near future. This would be in addition to the full, professional inspection.

 

[DessertDivaFL]

I didn't take the time to carefully read all of the responses you've gotten, so this may repeat something. My suggestion is that you have someone you trust who is really good at home repair check it out thoroughly. (I'm assuming that wouldn't describe either you or your sweetie.) Someone who does a lot of repair knows what to look for to make sure nothing will need a major re-do in the near future. This would be in addition to the full, professional inspection.

Great idea, Rae! Thank you. Luckily, my fiance is a door/window expert. We have friends that are carpet cleaners, screeners, painters, etc. We are so blessed! However, our friend who used to do home inspections may not be legally permitted to do them anymore. I am not sure. I found 4 more homes to check today. Wish me luck!

 

[pampchefsarah]

Look at LOTS of houses. Don't take the first one you see because it's so cute! This might be the perfect one, after all, but look around and be sure.

Also, try to avoid having any bedroom connected to more than one bathroom. My poor daughter gets to hear BOTH bathrooms in our house (if this had occurred to me before we bought the house, we wouldn't have purchased it).

Also, make sure there is PLENTY of storage space, and, if possible, avoid HOA's.

 

[DessertDivaFL]

I just got back from the mortgage office. I am pre-qualified! That is a miracle because I had filed for bankruptcy 3 years ago. God has certainly blessed me!

 

[KellyTheChef]

Danielle...I am so excited for you guys!

 

[lacychef]

That's great news!

 

[The_Kitchen_Guy]

Be vewwwy vewwwy quiet...

http://www.mudvillegazette.com/milblogs/archives/elmer%20fudd.gif

we'we hunting howwzes.

 

[KellyTheChef]

Be vewwwy vewwwy quiet...

http://www.mudvillegazette.com/milblogs/archives/elmer%20fudd.gif

we'we hunting howwzes.

Cute!

Your "mood" even matches!

 

[DessertDivaFL]

Be vewwwy vewwwy quiet...

http://www.mudvillegazette.com/milblogs/archives/elmer%20fudd.gif

we'we hunting howwzes.

That was so funny! Good thing I went to the bathroom before I read your post!!! :blushing:

I checked the MLS of one of the houses we are interested in and it is now off the list. :cry: It was our top pick. I guess we will have to keep "hunting howwzes".

 

[DessertDivaFL]

Here's an update: We found a house yesterday and put an offer on it today for the asking price. Here are the statistics and let me know what you think:

Never been lived in, built in 2006, 4 bed 2 bath 2 car garage, 1758 sq/ft of living, lg lanai, well/septic, brand new appliances including washer/dryer, asking price is $104,900.

 

[pampered.chris]

I am keeping you in my thoughts and prayers!!! Best of luck on getting this house!!

 

[lacychef]

Good luck---sounds nice!