Foreclosure/Question for Dennis
I am 37 single and currently living in the Midwest with family members, I pay rent for them and I never had my own home. I am unemployed now and I am going to college while looking for work, but I saved some money from my last jobs and I like to buy my own house. My father lives alone in his apartment and he was receiving disability benefits for the last 15 years, he use the payments that he receive for his living and to pay his own rent. Instead of wasting more money for rent I want to buy my own house to build equity and let the house appreciate.
I want to buy a single family house below market price for about 70 to 80 thousand cash without using loans, and I want to bring my father to live with me in the house. Some of the houses in the county where I live decreased in value, but my hope is to buy a house that can increase in value every year.
I contacted few real estate agents to track and locate the delinquent home owners to make a deal to buy foreclosure home, but they were not able to help me.
What are my additional expenses other than taxes and utilities ?
Each county sells foreclosure homes should I use the county foreclosure auctions, or should I use auction.com, or should I go to a real estate agent to buy ?
Any comments or suggestions are appreciated
Sorry for the late reply.
You should have enough money to buy a home for the $70,000 you mentioned. That is in most areas. Real Estate Agents, or shall I clarify, licensed Agents cannot give you any information on preforeclosed homes. Fed laws protect people and will not allow any personal information to be released. It would be illegal to approach a homeowner is the preforeclosure situation. You may have the option of so called buying the note and becoming the lender. In that case you would purchase the mortgage and it will be up to you to negotiate payment for foreclose which can take more than a year. In essence your not really saving any money. Your better off sticking to homes on the market. Work with a good agent you feel is qualified and have them send you updates on new listings and price changes. They will need proof of funds before writing an offer to purchase.
I avoid auctions. Many online auctions are not licensed and therefore have no rules to follow. In Wisconsin laws on disclosure are very strict. These laws protect buyers as well as sellers. Out of state auction houses, many of them are run overseas to avoid the law, well you have to know who you are dealing with. Look at the Waukesha County website. It pretty much describes risks buyers face. http://www.waukeshacounty.gov/defaultwc.aspx?id=38229
With all the hassle and running around, I would also suggest you talk to a good Real Estate Attorney before looking at any purchase not involving state approved forms. Depending on where you live a cash deal seems to be your best option. Many sellers like Fannie Mae and Freddie Mac offer homes to owner occupants for the 1st 15 days before letting investors bid. That puts you in the driver seat with a cash offer. Most of the time they will expect a full price or near to it offer. Also HUD, make sure you are on the official website, offers foreclosed homes.
I hope this helps and you find a good agent. I can also see if I can locate one in your area as a referral. I have access to Real Estate Agent social sites and can see which have the time and put in an effort to educate the public.