Foreclosed home...
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Foreclosed home...
Does anyone know how to go about buying a forclosed home? We will probably be moving to California in the next few years and the prices there are CRAZY!
Have any of you ever bought a forclosed home? If so, what is the process...is it difficult? My inlaws are looking for property to invest in (in california) and we may end up living there. This would be great opportunity if we only knew the details!
Thanks! 
never bought one but i live in calif, the bakersfield area and u are right the prices are crazy and beyond rediculous. we bought our house two years in august and it has more than doubled in price... now im wondering if the money in profit would be worth the house i live in ...its my dream home.
Where about in California are you looking?
I live in Los Angeles, thee miles inland from the beach. The prices are indeed VERY crazy.
A house down the street from me just went into forecloser a few months ago. There were so many bids, that it sold WAY above what the home is worth.
The only family dwelling in this area under six, are condos. If you go more inland the prices are a bit cheaper, but not by much.
I'm always amazed how people live where the cost of living is so high!!! I'm assuming you mean $600K and that just floors me because does that mean you make a higher salary where you live to compensate for that? I'm so not being nosy, but just in general I never understand how people in high dollar areas like CA are even able to get by.
I doubt you will have much luck saving that much money.
Forclosed homes are usually not taken care of very well
or if it is taken well care of then market prices drive the price of the house up.
Of course that only applies in popular or city areas.
Areas with not too much buying and selling then you probably would get a good deal.
I'm in central California, about 90 miles south of Sacramento. The average price for homes in our area is $400K and that's quite a bit cheaper than many places in the state. Our salaries often aren't that much more than you'll find in other areas, which is why so many Californians commute. Many people here work in the San Fransisco/Bay area and commute two or three hours in order to own a home that is "affordable" here in the valley. I know there are similar situations along most of the coast and in Southern California, near any of our largest cities.
Even foreclosed homes are in high demand and you may not save much money. The cost of living here is so high that you need to make sure that the raise in pay is sufficient to make up for the expense. If you were to move to a less populated area (usually the farther east or north you go), the cost of living would be lower.
I didn't realize people commuted that far, but I'm a midwesterner, so I'm totally ignorant about that. I travel often but as far as the day-to-day living of people in big cities and how much different it is than where I live, I'm clueless! Thanks Tink.
We will be looking in the Manteca, Ripon, Modesto, etc... My husband's family is from Manteca, so we would want to live as close to there as possible. I found an UGLY house in Ripon. It looked like a dentist office and it was 1500 sq ft and it was....$390,000! OUCH!
Its hard to see that when I compare it to the deal I got on my house. My home is 1750 sq ft, brand new, gated community, etc and we paid $127,000! My inlaws told me that my home in California would be around 500k! :0
I'd say 500K at least, depending on what area you are looking into.
DH and I are looking into buying a home more inland than where we are now just so that we can afford it. For a home in the early phases, not even built with about 1800 sq. ft. and 4 bd/2 bath we are looking at about 400K. Once they are finished they will go up even more and in that area there are a lot of new developments that go up close to 100K a year, or so they have been the last 2-3 years.
Where we live now, 400K won't buy you much. Well it might but not in a neighborhood i'd feel safe in. (We live in San Diego County)
Foreclosed homes are really much cheaper than market prices here in CA. If your lucky, they will be maybe 2-3% below.
Monica, email me if you have any questions about the area. I'd be more than happy to help you out. We'll end up as neighbors!
I bought my first home at an auction. You can check your local paper for ads of auctions. Check w/ banks. Once you start asking around you will find out who is hosting auctions. You can ask a realtor about companies that host auctions. Also, a bank has what is called an Oreo file. It is a listing of foreclosed homes. You can get this list from all the banks around and check that out. You do that pretty much on your own, and no auction is done w/ that type of sell.
For the auction, typically, a listing or catalog will show all the homes and businesses to be auctioned. Make sure you take the time to drive and LOOK at each home, esp since you want to live in it, not just purchase for rental or turnover. TAKE NOTES! Do your research on the area you are searching. At an auction, if you win, you must have your finances in place at time of winning bid so you can make your down payment and what not. most auctions are AS IS condition and the sell happens that same day. Be preapprovd and have your realtor aware you are attending the auction. Personally, I did not use a realtor. ABOVE ALL ELSE DO NOT BID MORE THAN YOU DECIDED BEFORE THE AUCTION! Most auctions are fast and the idea is for the auctioneer to force the price up as high as possible. People get really caught in the moment and the "win" that they just keep going higher. Go to view auctions just to watch. Get used to the feel of the flow. Once you find the house you really want, check out everything about it. Have a home inspection done. Figure the highest amount you can afford and stick to your guns. Remember, the right place at the right time, at the right place will be yours at the right time and not a moment sooner. If you loose the auction, no big deal, something better is around the corner.
When looking at auction houses, look for one that has "helpers" on the floor. And if the bidding is at a slower place you are less likely to bid over your budget. When I won my house, the bid was between several people initially. Then when it is clearly between a handful of people, a helper stands next to you and kinda talks to you about what is happening. Now ofcourse they work for that company and they want the bid as high as possible too, but I found mine very helpful. It is very scary to be bidding as a primary bidder and you are about to spend a huge chunk in about 3 minutes. having him keep me calm was quite helpful. It is all very exciting too! That was my third auction I had been to. I did not bid at the first one, I did bid in the second one I went to but my price range was quickly passed so I just sat and watched. I strongly advice watching a few first.
As for picking my property, I drove around to see many homes before I found one I liked enough to bid on. And the one I liked, I almost didn't go inside because of the way it looked on the outside. But said "well, I drove this far, might as well go inside"....to my surprise, the home was MUCH bigger than the description showed, had an upstairs loft not mentioned, a bathroom not mentioned, and a really nice pool. So do take the time to look at the place even if you think it is not what you want. Of course, if the neighborhood is icky, then I wouldn't bother with what it looks like on the inside.
Good luck. I really enjoyed the experience. Mainly I think because I stayed in my budget and I still won. You will kick yourself if you overbid....once they accept your bid, you are stuck with it. Keep telling yourself what your limit is. Write it down in big print on an index card if you have to and keep looking at it. Trust me, it is all very overwhelming and fast moving and easy to get caught up in....but well worth it
Thank you so much! How much money (if you don't mind me asking) do you think you saved on your home by purchasing via auction?
The Oreo file: is that just a way to save lots of money without going to an auction?
My sister lives in Modesto. She bought a huge home, pool, big garage, etc for the higher end of three. It is really beautiful there! If her house were here, it would be worth well over a million!
Monnica, I paid what I could afford on a home. This was before the huge price hike in houses in FL. I won bid at $37,400 for a 3br, 2bth, lr, dr and huge kitchen home w/ a pool and converted small attic which made two rooms and yet another bathroom. Wow, I forgot about that room. So it was 2.5 bath. I sold it AS IS after getting married. It was a 1938 house and DH didn't want to spend the time or money on fixing it for sale. I sold it for $55K in my pocket. They fixed it up and sold it for $125K within 6 months. DH should have listened to me. I bought in a neighborhood that was on the rise but still sort of messy when I bought it. The homes are expensive now in that area.
Wow! Sounds like if you have lots of cash, that would be a good way of making money/investing.
The Oreo file: is that just a way to save lots of money without going to an auction?
I'm thinking of getting it from my current bank and attending a few auctions even though I am in Tx. and I will be buying in Ca. What do you think? I'm still a little confused on the difference between the oreo file and the homes that are up for auction.
Also- can I get an Oreo file concerning California homes from my local bank here in Tx?
don't know-never looked at oreo files (not sure of spelling, could be different, but pronounced that way). My old employer bought both his homes that way and saved a fortune. Couldn't hurt to call your bank and see what they say.
Thanks Dana! You are such a help. I will call Bank of America tomorrow. I'll let you know what they say!
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