What education or training do you need to learn how to buy fix up and resell foreclosed homes?
I recommend preparing for and taking a realtors license test and working in the construction trades for a minimum of 3 years. I have seen many many people try to do it with less than this basic preparation and get burned or make profits that are so slim they'd rather work Mcdonalds.
55 people found this useful
Answer The obvious benefit is that you are purchasing a distressedproperty that has to be sold because of an unfortunate financialsituation. This should result in a below mark…et price purchasingopportunity. Financing will differ if you are purchasing the property as aninvestment or as a primary residence. Many of these properties willalso have repairs that will need to be made in order to passinspection and bank appraisal, so you will need to have a clause inyour purchase agreement covering this eventuality. For instance, ifit is a HUD house, you may find yourself in a position where youare unable to get a loan on the house if certain repairs are notdone and HUD refuses to do them, let you pay for them, or do themyourself. It can be a sticky wicket. It also depends on whether you are buying only as an investment orif you intend to occupy the house. For example you may not want tolive in a neighborhood where most of the homes are rentals, butthis may not matter if it is an investment. As with any major purchase you need to do your homework becausemany of the laws that protect you in a conventional real estatetransaction may not apply to a foreclosed property. Further manytimes if the person who owned the home was foreclosed on because ofnot being able to make their mortgage payments, there may be otherdebts such as property taxes that will need to be considered. Remember that these people are "losing their home," and you may bethe target of their disappointment. On your final walkthrough (ordo so before closing), take pictures of the home, particularlylight fixtures, fans and appliances. Our sellers made off with manyof the lighting fixtures and parts of the house and we had norecourse. Finally, if you do buy a foreclosed house, make sure that you havesome savings to apply to repairs and replacements. These houses area great deal pricewise, but there will be some sweat equityinvolved for the bargain. Answer At first glance, it looks like a tempting deal: you get a perfectlygood home for practically half the price for sale, or even less.But this could be a catch, because every city has unscrupuloussellers, buyers, agents and lenders. So, take note of the followingpoints: . Know What You're Buying . Do A Title Search . Get Insurance . Check Into The Equity . Work With Your Agent Answer Foreclosure homes offers you the smartest way to save lot of moneyand time (if the foreclosed property is in great shape). If youhave no time and not much more money to invest for getting besthome in your preferred area then buying foreclosure homes for salecould be the best solution. But follow the advice above.
Not all cash. You have to pay some cash to buy any home (the down payment). Therefore you buy it the same way you would buy any house.
You could buy foreclosed home below market value, ranging from 10%-50%. With this you could save a lot of money and if you decide to sell your newly purchased property you wil…l have huge returns from your investment.
See, when you talk about foreclosed home, then let me tell you thatthere are 3 categories in which foreclosed home process generally falls 1.Pre-foreclosure 2.Auction3.Ban…k Owned Hence, it certainly depends upon the category in which theforeclosed home process is falling, that how much amount you haveto pay. In Auction process, you have to bid for the home and if you placethe highest bid then home is yours. In Bank or NBFC owned, the Bank like IDBI, ICICI / NBFC like BajajFinserv list the home with a real estate agent in the local MLS andyou have to contact that person if you want to buy the home. Hereyou can negotiate on the price of home.
Yes, certainly, if you have the cash to do it. Better late than never.
Are there mortgage loans where you can borrow for example 30000 The first 15000 to buy a foreclosed home and 15000 to fix it up because the appraisal value is 32000 on this house?
The answer to this question is more or less, yes. First, the home has to be free and clear meaning no lien against the property or that you have $32k in homeequity. Secondly, …most companies require that you live at the property. This can usually be verified with a utility bill, phone bill, bank statement stating your name and address(the address of the property you intend to use). Third, you have to get the home appraised by a licensed professional, if the appraisal comes back at $32k, your in luck. Lastly, you've got to have a decent credit score. Your credit score will determine how much of the $32k you are able to borrow(also known as LTV, Loan To Value). An excellent credit score will most likely enable you to use 100% of the homes appraised value. An average credit score may only allow you to use %80 of the homes value. Additionally, it doesn't really matter what you use the money for as long as you live at the property, have equity in home and have decent credit. Hope this helps!
Unlikely.. Sorry to have to say that because by the nature of your asking the question, I suspect you are wanting to make money by buying real estate foreclosures.. At least… here in Texas, when you are buying a house at a foreclosure auction, who pay for the house right there at the sale - cash or cashiers check. That is not quite 0 down. The people who tout make money with no money down are telling you to leverage or borrow from family members to get the money. You are just delaying the risk or spreading it around then.. I have made money in real estate, but not in foreclosures. I invest and work with several businesses. I have a few articles that speak to these as well as my foreclosure experiences. I spent a year trying to buy foreclosed homes and gave it up because I could not find a deal that made sense.
Answer . The primary problem with buying a foreclosed property today is defective foreclosure procedures. Many problems have been found with recent foreclosures that are ser…ious enough to render the foreclosures defective. If the title is not examined by a professional title examiner who works closely with a KNOWLEDGABLE attorney the problems are not recognized and get passed on to successive buyers. When the defective foreclosure is found the remedy is time consuming and expensive. \n. \nOften the company or law firm that did the initial foreclosure is in another state and hard to reach. Those foreclosure firms are notorious for allowing low paid, non-legal-professional employees to carry out the foreclosures. They make mistakes regularly. \n. \nOther problems are liens, tax takings and unpaid municipal fees that were not reported and cleared during the foreclosure proceeding. Not giving proper notice to the federal government if there are government liens can result in it having a one year period following the foreclosure during which it can rescind the foreclosure and take the property.\n. \nThe homeowners who couldn't afford their mortgage payments also didn't spend any money on home repairs and maintenance. Many were first time home buyers who know nothing about home maintenance. Therefore, an extremely thorough inspection should be made to disclose expensive repairs that may be required to fix old problems that escalated.\n. \nAnother problem is the abundance of homes that were "rehabilitated" by non-professionals and then sold to inexperienced, unsuspecting buyers. They did non-professional electrical work and plumbing with no regard for building codes or professional codes of practice: another reason to get the best inspection possible prior to the closing.
If your buying a foreclosed home that needs repairs and some appliances can you add the cost to your mortgage?
There are mortgages that allow this. Ask your lender about an FHA 203K loan.
no that would be wrong
It is often easier to buy a foreclosed home directly from the bank than a new home if you are willing to put up with the possible problems caused by an older, empty house sitt…ing on the lot without maintenance for months. However, the bank will have less incentive to hold out for a better offer and will be more willing to part with the property without hassle. Foreclosed homes are easier to buy but may be more difficult to deal with after the sale.
When foreclosed homes are put up for auction that are usually held publicly by the banks. If you are able to meet all the requirements than you can purchase a foreclosed home.…
Do not let a low price tag bride you into a quick deal for a home. Be sure to have your budget planned out just to make sure you will have enough money for major repairs most …houses often need.
There is nothing wrong with buying foreclosed homes. A professional should be hired to inspect the home and find out what kind of repairs will be needed. There are pros and co…ns with purchasing a foreclosed home.
In Real Estate
Investing in foreclosure properties is more risky than a typical real estate transaction since the buyer is purchasing the home "as is" and will be held responsible for any is…sues discovered during a home inspection.
There are a few benefits of buying a foreclosed home. Foreclosed homes are generally cheaper than non-foreclosed homes. One can also negotiated for a better deal with a forecl…osed home because banks want to sell the home quickly.