Buying Foreclosure Homes
Questions about buying a foreclosure home in CA.???
My husband and I are thinking about buying a home that is in foreclosure, but are unsure of a few things.
*The property we are considering has been in this other family’s hands for ten years, but a couple of years ago they took out a $350,000 2nd mortgage. So between the first and second mortgages they owe close to $700,000. The property now is only worth about $425,000. From what I understand, it is the second that they have fallen behind on.
So, if we were to purchase this property, would we pay what the home is worth, or would we somehow be responsible for the entire debt?
Also, does anybody know anything about the HUD Officer Next Door program? (It’s where officers can buy HUD homes for 50% off) The website says their are no homes in my desired area at this time. Do they use foreclosed homes for this program, and if so will it be just a matter of months before they are flooded with available homes?
HUD actually purchases the homes themselves and then resells them, usually at a loss. They only have so much funding, it does not matter how many homes are available, they will not be buying more. Also, they only buy homes in “distressed” neighborhoods (bad side of town) with the idea of moving normal people into the neighborhood it will improve.
As far as this house…..
Is it already foreclosed? If so you are OK to buy it, the second already settled with the first, which is what they need done to sell the house.
If it is “in foreclosure” you need to move on. The first still holds first place, so they will want their entire 350k and the second will have to settle for remaining 75k, loosing 225k.
They are more likely to settle the first and just sit on the property for 2-3 years until the market improves. Their investors will not go for a 79% loss. If they wait it out their total loss will be much less.
Free Special Report: Buying Foreclosure Homes
If you have ever wondered how to buy foreclosure homes, you might be surprised at how easy and how much fun it is. Most people who are in the market to buy a home don’t know how to do it, so they don’t even look any further into it. Their loss is your gain. When you learn how to acquire them you will be a step ahead of all of the other home buyers in your area who don’t know how and therefore won’t be bidding on them against you.
There are books in the library on how to buy it that you can check out and read up on all of the tips and tricks of buying foreclosure homes. You can also search the internet for tips that can be very helpful. Most importantly, find out who is auctioning the foreclosure homes that you might be interested in bidding on and ask for the details and rules of the auction. These may be slightly different from the general rules you will find in a how to book or on the internet.
Once you have learned how to buy foreclosure homes and have made your first purchase, you will be able to help your friends and family through the process. Eventually you will feel like somewhat of an expert and you may decide to help others who are in the same situation that you are right now and build your own “how to buy foreclosure homes” web site. Foreclosure homes are usually sold at auction. There are online auctions and there are local auctions. You may have seen signs posted every so often in your town about a “sheriff’s auction”. This is likely an auction for a foreclosure home. There are also realtors and brokers who specialize in conduction foreclosure home auctions. Many of these brokers and realtors will put some of their foreclosure homes online for auction, too.
The basics of how to buy foreclosure homes is simply to find the home and to bid on it. If you place the winning bid, you pay for the home and it becomes yours. But there is a little more to it, and some of the details might be a little tricky to sort out. Make sure that you talk to someone who has experience in how to buy foreclosure homes before you place your first bid. If you will be the first person you know learning it, then you will need to learn the ins and outs of how to buy foreclosure homes on your own.
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