home buying thread #3524

[HulaSista]

which is the safest route or best route or most common or affordable route for home buying?

Pre-Foreclosure Properties
Auction Properties
Bank Owned Properties
For Sale By Owner Properties
Resale Homes Properties
New Homes Properties

this will be for 3 female relatives making a purchase

[que90nek]

home buying....

does that mean that one of the three will be living in the property?

[HulaSista]

all three living there with one being left there eventually (never selling; passing it on to descendants)

[que90nek]

all the methods u mentioned...

can be SAFE....

but i would say the most risky are

1. pre-foreclosure: the quickest way to actually make money, but there is no tellin what shape the property will be in when u move in....but this is the type of property that u could get control of for minimal down and u have an extremely motivated seller.......u may have to reinstate the loan in place...and that can be costly...like 10-20k....but after u reinstate..u then have control of the property...u own it.


2. auction: ditto...except that u don't make as much money...in texas u have to buy with CASH......so....this is not an option for most.

3. bank owned: ditto to number 2. banks don't like to negotiate and give u a good price.....although.....u will get a better price than retail

4. fsbo: when u cut out the agents...sometimes u can get a better deal....and the property is probably in pretty decent shape

5. resale: u can bargain.....and will often get a property that is in great shape

6. new: lots of SPECIALS...that make it to where u barely have to pay anything....but those same specials can be available on numbers 3-5.....u get the type of house u want with all the trimmings that u want...if in a new community....taxes will initially be low, but can go up quite a bit as development continues...so be prepared.

[zuriyahe]

Be extra careful of pre-forclosed properties. As with all things that sound GREAT, they can and often carry a number of extra risks. If a person is desperate..er...motivated to sell, then there is a chance that the owner has OTHER [liens] against the property. If you take the property, you also take the other [liens]. Just be careful and if it sounds too good to be true...then get a "title search". :D

[Big Moo]

Regardless of what option they choose, advise them to have the property inspected by a professional inspection service. They check everything in the house like the roof, appliances, furnace, AC, foundation, windows, electricity, etc. to make sure everything is in working order. If there are repairs that need to be made you can either require the seller complete them by a professional, or you can use that as part of your negotiation and have the price reduced.

I wouldn't worry too much about liens. There's no way you or any non-banker can be sure there isn't a lien on a property. The mortgage company will do a title search to make sure it's clear. If it isn't, they won't allow the loan to be completed until all debts against the property have been satisfied. If you're paying cash, that's a different story.

There are risks involved in everything you listed. Just because a house is in foreclosure, doesn't mean there's something wrong with the property. With the economy the way it is these days, chances are the previous owner probably lost his/her job and couldn't pay the note. Of course, an inspection will let you know what condition the property is, so you won't have to speculate ;)

My mother is in the process of buying a house now and just had it inspected Monday. I bought a house last November and did the same thing. It really takes away a lot of the stress of wondering what you're buying.

[que90nek]

have to agree with zuri...

step number ONE in dealing with foreclosures is to have a title company do a QUICK SEARCh...or an ABSTRACT on the subject property....

reason being is that u may think u r getting a good deal....but if there are liens against the property.....those are paid right after the note on the property is paid........

right now mike jackson has a lien against neverland ranch....which makes him upside down on his note.....that was why they were sayin that he might not be ABLE to sell.

[HulaSista]

any of you heard of this website:

http://mgic.com/