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Are foreclosed houses a good buy for someone wanting to purchase a home?
I notice there are always many houses available for sale that have been foreclosed. The houses in many cases are practically being given away at cheap prices. I have seen them as low as $9,000 in some areas. Are foreclosed houses good buys for those really wanting to purchase a home. But, aren't the richest people in america?

Posted by Crazy Horse on 10/15/08
Total Answers: 4

Answers-

A really cheap foreclosed home is probably not in liveable condition and while you may be able to pick one up for little money it would probably take a lot of money to make it livable again. Be careful and make sure that you have a chance to inspect the property and also have a professional home inspector give you a report about the problems that need to be fixed. This way you will get an idea of how many thousands of dollars it would take to get the house back in shape. I would rather check into Real Estate Owned (REO) properties. You will have plenty of time to inspect the property and can be sure that there are no "surprises" waiting like back taxes that are due or second and third liens that have to be paid off.

Answer posted by Reena on 2008-10-15 18:37:57

foreclosed houses are a really good buy for any one trying to buy a house at the moment because they are normally cheaper than they would normally be.

Answer posted by mac d' cheez on 2008-10-15 18:40:52

I'm not certain where you are seeing houses for as little as $9,000, unless the house is falling down and in a very undesirable location. If you are seeing houses priced at this level on the internet, be aware that many of these 'prices' are not the actual asking price, but may be the value of a second loan which is foreclosing, or also may be the amount on which the owner is in arrears on his first or second mortgage. Generally speaking, foreclosed properties are sold at or fairly near their actual values.

Answer posted by acermill on 2008-10-15 18:41:45

its like the stock market, you know its going up soon, but not sure when. Then if it comes up you've made a great buy. If more people lose houses the price will drop more and you bought to soon. If its a personal house for you to live it. Its a great deal when your happy with what you bought. If you want to speculate then good luck as I am into buying and fixing them up for rent and havent lost a dime in 30 years. After all it not what you pay for them, its how much can you get in cash for renting them. I always say 10% is a good return. As for a $9000 dollar home. you can add the price of repairs, the price of insurance, and taxes together and see if you can still make 10% profit. so you have to get at least $500 a mo. just to break even. (someplaces less).$590 is your target to make 10%. (just an example.)

Answer posted by Oldmansea on 2008-10-15 18:42:31

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