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04-02-2009, 11:25 AM #1
Renter
- Join Date
- Apr 2009
- Posts
- 3
Information on purchasing a soon to be foreclosure
Hi everyone,
Just a year and a half ago my young family of myself, my fiance, and I lived in a small 3BR 2BA home. We live in Central Indiana in a small town. Not many people want to live here due to the cost of water/sewage/ We were renting this home for $700/month. Very high with all things considered. Our first child was here and spent his 1st year here.
Fast forward another year, we moved and the home was purchased for $78,000 by someone who was my friend. He lost his job and the foreclosure process is now on-going. The home took a turn for the worse. Really needs LOTS of cleaning and just some minor stuff. Homes in this area aren't worth much. It's no more than 1200sqft with an attached 2 car garage and tiny lot.
Once it's foreclosed on, my fiance and I are very interested in trying to get the home. We know all about the condition it's in and whatnot. We also know it will probably sit empty for a long while. Half the houses around the area are empty or for sale. Whats the best plan of action for trying to aquire the home? Is it reasonable to think we may be able to get it for around $40,000? Income is "reasonable" and credit is upper 760+ for both of us. Thanks everyone!
EDIT: This would also be a first home purchase. We have in-laws who do have a mortgage but make well 6 figures and are willing to co-sign if they are even able to having their current mortgage payment of $450/mo.Last edited by diem; 04-02-2009 at 11:27 AM.
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04-02-2009, 11:29 AM #2
Fixer Upper
- Join Date
- Mar 2009
- Posts
- 30
Get Pre-Qualified: Securing financing early in the process is important because it will ensure that you are qualified to purchase the property. Being pre-qualified will also give you greater bargaining power when the time comes to make an offer. Find a lender that has worked with a number of foreclosures and understands the foreclosure process in depth. Taking the time to find the right lender will save you from a lot of frustration and may also save you from losing out on a good deal.
Know the Process: Knowing about the foreclosure buying process is an important part of purchasing such a property. You can buy a foreclosed property at auction, by working directly with the seller of the property, or even by working with a real estate firm to bid on the property. Finding out the type of process being used for the homes you will be considering gives you greater bargaining power and may help you to better negotiate a price and any additional benefits such as reduced closing costs.
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