Buying a Foreclosed property?

[khardbored]

No specific plans today, time is on my side. But I have seen properties listed as "foreclosed" on sites like Zillow, etc. (note, I'm talking one where it has been foreclosed, not "in foreclosure." As in, you can look on the county web site and see that a bank owns it)

But they aren't listed on the MLS or whatever it's called. Like the bank will do something some day, just haven't got around to listing it.

Can you get to these? Is there a nutshell version of the pros and cons?

Thanks.

 

[IowaRealEstate]

No specific plans today, time is on my side. But I have seen properties listed as "foreclosed" on sites like Zillow, etc. (note, I'm talking one where it has been foreclosed, not "in foreclosure." As in, you can look on the county web site and see that a bank owns it)

But they aren't listed on the MLS or whatever it's called. Like the bank will do something some day, just haven't got around to listing it.

Can you get to these? Is there a nutshell version of the pros and cons?

Thanks.

Homes listed that way are typically owned by the bank again but just not ready to hit the market yet. They will typically be on in a month or two.

The big potential upside is the price of a foreclosure. You can often get a deal.

The downside is the unknowns. No seller's disclosure, no history of the property, etc. You take more risk buying a foreclosure but it can pay off from time to time if you do it right!

 

[ArgentCy]

A foreclosure definitely carries more risk and often sell to investors. For that reason alone they are typically discounted 15-20% at least in my market. I bought my house as a foreclosure but had a couple inside tracts that allowed me to find and jump on a great deal. Partially because the Realtor whom the government hires to sell them doesn't really care and just wants a quick sale. This is one area that a good realtor can be invaluable especially if you are not an experienced home buyer. A lot of times the REO's (foreclosure's) can spend years before they get to market or sometimes the realtor never markets them because they already have a buyer in mind. These purchases are not for everyone but I like them as I like to do a bunch of work on my houses and the price is right.

 

[cyhawkdmb]

I used to have a company that managed foreclosed properties. I would not be afraid to buy a foreclosed home. Plumbing heating/air and roof would usually be your main issues.