Thread: foreclosure properties

Yes, there are foreclosures under 10K, in a shape that you can't believe and in a location you wouldn't drive by, but yes, that exists.
Buying for cash only, no problem, but with 0 down, I doubt it these days.
I have a score above 720 and a salary above 40K/year and couldn't refi $140K. My guess is the bank which got the $700B bail out are keeping the money for them, for private jets and parties.
I suggest to use the pre-foreclosure path and buying owner finacing or "subject to"...
It's not the amount of money, it's the value of the deal that matter...

cody, once again has spoken the truth. YES, there are homes to be had for less than $10K- but if it sounds to good to be true....

If you are an experienced investor, some of the cheap, distressed properties could be great cash flowing rentals. But if you think you can pay $10K and move right in...well you could depending on the lifestyle you are accustomed to. I would contact a local REALTOR and ask how bad are these properties. Some may lie and say it just needs some TLC or elbow grease, others will be honest like cory was. Work with the honest ones to find properties in decent areas.

IF you are capable of paying cash & doing the hard, nasty rehab work yourself, you can make out like a bandit now. Flipping is not suggested but buy, rehab and rent. Build a portfolio of cash flowing rentals.

Originally Posted by pss

Hi, I would like to know if its true that the foreclosure properties can be sold as little as 10K+, like advertised online. Is there a catch to it? Can I purchase a foreclosure property for a cash only or also for 0% down? Does the bank loans money for this purchase? I do have a decent credit score (720) but my income is about 40K? Do I qualify for 100K loan?

All help is much appriciated.

You can get them zero down if the foreclosing party was a private entity and you have the credit and income needed to fund the deal. Most of the time however you'll have to put some money down, even on houses that you can get for 10k.

The banks make money off these because they are able to free up capital that they were forced to keep tied up due to the bad loan (typically 3 -5 times the original amount).

With income of 40k and that credit score of 720 you should have no problem qualifying for a home loan. You will have to show proof of income, proof that your total monthly debt service expenses including the amount you plan on borrowing for the house don't exceed 40% of your monthly income, and the house has to appraise for at least what you are paying for it.

Hi, I wanted to thank you all for your tips and advise. It's greatly appreciated!!!

Yes you can buy property's for under 10k but they usually are
not in populated areas or in bad neighborhoods