forclosed home?

**Bo staff** · 02-08-2009, 05:35 PM

I am searching the market currently for my first home. I would like to buy sometime at the end of this year 09'... I have seen on real estate websites houses being offered VERY CHEAP, under the category of "Foreclosed" and I understand why they are foreclosed but I am confused as to how it works?

the website states this:

"This property is an REO. This is the final step in the foreclosure process. Ownership has reverted to the lender. This 0 square foot property has 0 bedroom(s) and 0 bath(s). The estimated sale price is $137,520.00 To access more extensive information on this property click the 'more property detail' link below. You will need to register for full access. Information listed with each property including estimated loan balance is derived from sources deemed accurate but we do not guarantee the accuracy of such information. Please consult all relevant title documents prior purchase."

now being the house us just $137k, is that what is left owed on the house to the bank? Is it smart to purchase a home that has been foreclosed?

any info would be great.

**Codythebest** · 02-08-2009, 06:51 PM

Of course it's smart, because you get more s/f for the $. Now, once you register on these websites for a minimal fee of $$/month to access the informations, most of the time, not very accurate and/or already sold properties, you could get the latest foreclosures...provided free from Realtors. Then you can send your offer to the bank and see what happens. Make sure to write your contingencies on your contract. Be careful for your inspection time frame as well...
Or pay nothing to your Realtor to do the full thing for you. That's even smarter, especially knowing you'll never pay anything to your Realtor...

**Bo staff** · 02-08-2009, 06:57 PM

Originally Posted by Codythebest

Of course it's smart, because you get more s/f for the $. Now, once you register on these websites for a minimal fee of $$/month to access the informations, most of the time, not very accurate and/or already sold properties, you could get the latest foreclosures...provided free from Realtors. Then you can send your offer to the bank and see what happens. Make sure to write your contingencies on your contract. Be careful for your inspection time frame as well...
Or pay nothing to your Realtor to do the full thing for you. That's even smarter, especially knowing you'll never pay anything to your Realtor...

Ok! so if I was approved by the bank, I could make my offer on the foreclosed home to the realty company bank and if approved, that would be the set price of the house owed?

But what does the price actually mean? as listed at $137k, is that the amount left to be paid on the home that whoever owned it prior could not?

therefore, the bank would be more opt to give a loan that is CHEAPER for a house that is mostly paid off?

**CarlandJeanettesy** · 02-08-2009, 08:45 PM

Yes what does it all mean?

**Codythebest** · 02-09-2009, 05:40 AM

Originally Posted by Bo staff

Ok! so if I was approved by the bank, I could make my offer on the foreclosed home to the realty company bank and if approved, that would be the set price of the house owed?

But what does the price actually mean? as listed at $137k, is that the amount left to be paid on the home that whoever owned it prior could not?

therefore, the bank would be more opt to give a loan that is CHEAPER for a house that is mostly paid off?

Yes. Also hire an buyer's agent for yourself. It's free. Going to the bank's agent, representing the bank, and doing everything to get the most money to the bank, and try to get the most money from you, will not be smart. Your agent will negociate a lower price for you.

**Greg** · 02-09-2009, 08:04 AM

Originally Posted by Bo staff

Ok! so if I was approved by the bank, I could make my offer on the foreclosed home to the realty company bank and if approved, that would be the set price of the house owed?

But what does the price actually mean? as listed at $137k, is that the amount left to be paid on the home that whoever owned it prior could not?

therefore, the bank would be more opt to give a loan that is CHEAPER for a house that is mostly paid off?

What that site is trying to do is offer just enough mis-information to get you to sign up. Forget that site and get a buyers agent to show you the foreclosed properties.

The banks list all of their foreclosed properties with agents. They don't list any of their properties with these foreclosure sites. These foreclosure sites are just trying to take advantage of the situation to get you to pay for information that is free.

If you want to see foreclosed properties get an agent who will work for you.

What the bank is owed has nothing to do with what the bank will sell the property for. The bank will sell the property for what they can get in the current market. Sometimes they will take 20-30 cents on the dollar and sometimes they will get 90 cents on the dollar.

**CodyUT** · 02-09-2009, 09:25 AM

Originally Posted by Greg

What the bank is owed has nothing to do with what the bank will sell the property for. The bank will sell the property for what they can get in the current market. Sometimes they will take 20-30 cents on the dollar and sometimes they will get 90 cents on the dollar.

[COLOR=black][FONT=Verdana]To add to this, banks are not in the market to hold on to properties. They don

**Bo staff** · 02-09-2009, 11:26 AM

good info! thank u!

So my best option would be to go to my local bank of the "town" and speak to the mortgage broker to show me the foreclosed home in my town?

then if I choose one, get the cheapest price I can without going too low, so that the bank accepts it, then see what it is WORTH if I purchase it!?

**CodyUT** · 02-09-2009, 04:44 PM

Not really your local bank, the problem with that is that in order for that certain bank to have the information for foreclosures in your area is that the home owner would have to have the mortgage from that bank which is most likely not the case. Thats where working closely with an agent can benefit you. They will have access to see which properties in your home town are in foreclosure and they can also submit the offers to the banks who hold the mortgages.

Are you looking to buy for yourself or possibly hold as an investment? This may be a more important question for you to answer. You did say this will be your first home but didnt say what you planned on doing once purchased.