What are the ways to figure out if a foreclosure is a waste of time (a bank that is going to jerk buyers around for at least 6 months before realizing they won't get their dream price) or possibly worth one's time?
A house recently hit the market marked "foreclosure" and I, being nosey, started looking up the history on it. Wow, it's ugly (mortgage balance ballooned to 2x purchase of the home, was modified several times and recast to 40 years with a lot of 'principal forebearance'). And it's been dragging on for almost 20 years of this.
Normally I'd watch the dumpster fire from a safe distance. But it has some characteristics that are hard to find – dead end street + single story + proximity to coastline. So I'm wondering if there's a way to figure out if the bank here is serious about selling and removing the current residents? The 'listing agent' is auction dot com which doesn't get great reviews.
Foreclosure – waste of time?
byu/Top_Housing6819 inRealEstate
Posted by Top_Housing6819
5 Comments
Is the owner in pre-foreclosure or is the property now owned by the lender?
Bank sale AND occupied?
Good luck!
Banks want clean offers. Cash. No contingencies.
I buy foreclosures all the time. high risk high reward. you got to figure out this is just some pre-foreclosure or REO bank owned. REO bank owned are ready to sell most of them.
usually it’s cash only site unseen and potentially occupied requiring the eviction.
fortunes are made but you can also lose your shirt if you don’t put enough buffer.
I had to deal where it was a decent profit until I realized I had to replace the whole sewer line to the street. but I had enough margin where it was break Even instead of massive loss.
What do you try this…”And it’s been dragging on for almost 20 years of this.”
Who owns the house now?
We bought our first house as a foreclosure, first to see it, first offer and accepted within two days, only $5k under asking price but we were a cash buyer, that makes it a lot easier.