Foreclosure situation - opinions

**RENewbie101** · 05-16-2008, 06:11 PM

Guys, I need your opinion in the following scenario. A home that has a rough estimated value of 300,000 (very low end is 280,000 and high end is 340000) has been foreclosed on. I am now working with the lawyer acting on behalf of the shortsell. I am making an offer of 215000 on the home and plan on taking a 3 year interest only mortgage to give me enough time to make a couple of fixes and sell the home. The plan is to buy and sell the home within a year's time. It's in fairfield county, CT where homes haven't dropped as drastically in other places. A 3 bedroom home, 2 bath, 1650 sq feet, and in addition has an inlaw apartment with full kitchen (shared laundrey). Do the experts on here think this sounds like a good idea? and what other "main" facts should I be looking into and considering while making this purchase? I appreciate everyone's help.

**fongna** · 05-18-2008, 09:59 AM

I have done short sales in Chicago and in my opinion I wouldn't get a property for less than 60% of the market value for a short sale especially if it requires work. Are you thinking about flipping the property for a profit or renting it out? If you're thinking of flipping it keep in mind your holding costs of a mortgage, taxes and insurance. also, if your local market is like anywhere else you might have a difficult time selling the property. Look into renting it out for a few years and then selling in a better market and for more of a profit.

**Codythebest** · 05-18-2008, 10:33 AM

Get the money first. Be ready to show it instantly when needed. Then go to the bank and negociate down. Once you have a number, negociate it lower with your money in your hand. Show you can just drop the check on the banker's desk at any time or immediately. Do your homework A flip success is when you buy, not when you sell...

**TJ2007** · 05-24-2008, 12:30 PM

Exactly, in the current market you should be looking at any deals unless you can get it for less than 60% of the after repair value. There are plenty of deals out there available between 40-55 cents on the dollar.

Also a 3yr mortgage in the current market is very dangerous.