Buying A Forclosure House For MYSELF: Advice Pls
I am looking to purchase a home in the next couple months but i do not want to buy the conventional way because home owners in my area are asking way to much for their house.
I was thinking that i should either look up houses that are in pre-foreclosure and write the owner a letter, call or stop buy. Or purchase a house from the auction. I have no idea how the prodcedure works to purchase a house from the auction. I have about 20k to work with and i am also planning to get a loan.
Does anyone have any suggestion on buying a house at a discounted price through foreclosure listing, foreclosure aution or tax lien properties. Any help will be GREATLY appreciated.
wow..............anyone........a little imput........please
Independentchic00,
As for the pre-foreclosures, since you don't have enough cash, the auction route is out of the question.
I like your screen name
Since I am in pre-foreclosures, I would find a deal that has some good equity, and use some of the 20k (as little as possible) to reinstate the loan (make up the back payments, attorney's fees, etc) and take it over subject to the existing mortgage. Then after 6 months or so, try to refinance it and put some cash in your pocket. You may have to hold it for 12 months because of title seasoning, depending on what lender you go with. Just remember to buy it right and don't pay too much. If I had the 20k, I would use it to buy 3 of them. Don't use any more money than you have to. Use "leverage" as much as possible. Good luck!
Jason
I suppose the safest way would be to try to find a home that's needs a little work that nobody else wants to do, and try to beat the seller up on the price.
It sounds like you want to buy the way an investor buys, but not have the contacts, knowledge, or skill an investor has.
Maybe attend a local rei club meeting and hook up with an investor willing to help you out. Maybe even split the what would be profit 50/50.
Ex.
If FMV of property is $100k
you can pick it up for $80k
split the $20k 50/50.
you bought the home for $90k and he's pocketed $10k.
you don't get investor like returns, but you do get a better deal then buying off MLS.
There will be extra costs associated with the transacion, so numbers are a little skewed.
Probably a little harder then it sounds- I'm a newbie so I may be way off base, but I'm just trying to give you some ideas. If nothing else, maybe someone else will jump in to tell me how wrong I am and give you a better solution.
Tom