House Hunting

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carolinagirl

What's it 2 U
The hubby and I are house hunting now that we are somewhat settled in Waldorf. :smile: So, I was wondering if anyone knows how the foreclosure process works.

We were looking at the newspaper yesterday and notice tons of legal notices on houses in the area. I say to the hubby - "hey maybe we can get a nice house CHEAP :biggrin: ." He says "I bet there's a catch." Anyone know???
 
SmallTown

SmallTown

Football season!
There are different types of foreclosures. HUD homes seem to be the biggest thing around somd, and they for the most part are AWFUL.

If you're looking for a real good deal and want to buy new, go to the tax sale auctions in charles and st. marys (around this time, may have already passed in charles?? not sure). With the tax sale auctions, normally it is land but you can sometimes get REALLY good deals. (less than 1K per acre sometimes). You have to do your research before hand, but it is worth the effort.
 
SmallTown

SmallTown

Football season!
Well, most of the listings are just land. Normally if there is a home involved, they will do whatever it takes to get the taxes paid so it won't go to auction (plus many mortgages companies step in as well). When it comes to land, sometimes people just can't pay the taxes and let it go (happens a lot in areas that are seeing rapid price increases). Others inherit property and don't even know it. Some inherit property and just don't want it and let it slide. But sometimes the property is just useless. This is what you have to look out for. You would first do a check to see if the property has/will pass a perk test. The next thing to do is look at the property. One property a friend found sounded great, until he went to look at it and it was an old gravel pit.

If it is heavily wooded, you can have people come in and take the trees out of the area to build the house on. They do all the work, then write YOU a check. It is great!
 
Ponytail

Ponytail

New Member
It wouldn't hurt talking to a realtor either. While working with my realtor and driving to see a few homes, he had pointed out two that he sold that were foreclosures. they'll do all teh homework as well.

Why'd you settle on Waldorf? Where will you be working?
 
SmallTown

SmallTown

Football season!
Originally posted by Ponytail
It wouldn't hurt talking to a realtor either. While working with my realtor and driving to see a few homes, he had pointed out two that he sold that were foreclosures. they'll do all teh homework as well.

Why'd you settle on Waldorf? Where will you be working?
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I know certain agents deal with foreclosures as their "specialty". I would look in the phonebook and see if any agents list this. If not, get PT to send you the name of his agent and maybe he/she can help or at least point you in the right direction.
 
jazz lady

jazz lady

~*~ Rara Avis ~*~
PREMO Member
Originally posted by SmallTown
I know certain agents deal with foreclosures as their "specialty."
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:yeahthat: I have a friend who did just that. They got a beautiful 4 bedroom house at $20k below assessment.
 
Dymphna

Dymphna

Loyalty, Friendship, Love
There are two main catches to forclosures. One is obvious, if someone knows they are going to be forclosed on, they often trash the place, sometimes for spite, but usually they take all the appliances, light fixtures etc. so they can salvage something of what they've lost. You are buying "as is," so you will usually have to buy all new appliances and may have to make more major repairs.

The other problem a lot of people have with forclosures is that the banks will not accept a contingent contract. That means if you are selling a house and want to use the money you make from it as a downpayment on a new one, you already have to have the money in hand to buy a forclosed property.

A couple more issues pop up with tax sale forclosures. One is that the people are often still in the house, so you can't go see it. Another is they have a time period after the sale (30 days??) where the existing property owner can still pay the taxes and keep their property. You have to put down a deposit at the time of the sale but you will get it back if the sale gets canceled.

Those are the "catches" I know about, but if you have the down payment and are able to preapproved for a loan. You are not worried about selling another house but have some place to stay until the sale goes through, you can get some really great deals.
 
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carolinagirl

What's it 2 U
Originally posted by Ponytail
It wouldn't hurt talking to a realtor either. While working with my realtor and driving to see a few homes, he had pointed out two that he sold that were foreclosures. they'll do all teh homework as well.

Hopefully, my hubby will talk to a realtor about this also. We have talked a few, but haven't settled on one buyers agent yet.

Why'd you settle on Waldorf? Where will you be working?
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Well, we are from NC and we both work in DC with two young children. I was used to a 5 - 10 minutes commute to work and both the kids in NC -- off at 5:00 pm and always home by 5:20 pm after picking up both kids at two different daycares and a brief chat with counselors. So needless to say my current 1 hr to 1 and 1/2 hr commute is a beotch and I am not happy about it!:mad: :boo: My hubby is police officer and works the evening shift so I have to pick up both kids by 6:30 at the very latest. If I had to drive any further than Waldorf I wouldn't make it on several levels! Don't these slow drivers know I am on a time retraint in the evening

Anyhoo, that's my story and I stickin' to it even if you all find out my mother-in-law lives in Calvert and even Waldorf is a little too close!:biggrin:
 
SmallTown

SmallTown

Football season!
Originally posted by cmcdanal
Another is they have a time period after the sale (30 days??) where the existing property owner can still pay the taxes and keep their property. You have to put down a deposit at the time of the sale but you will get it back if the sale gets canceled.
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The catch also is that you charge interest on any money you put into the deal... So even if they come back and pay the taxes, you still collect the interest on it as well as principal (and it is a pretty high interest rate if I recall). So if that happens, you won't really "lose", just won't gain as much as you had hoped.
 
C

carolinagirl

What's it 2 U
Originally posted by cmcdanal
There are two main catches to forclosures. One is obvious, if someone knows they are going to be forclosed on, they often trash the place, sometimes for spite, but usually they take all the appliances, light fixtures etc. so they can salvage something of what they've lost. You are buying "as is," so you will usually have to buy all new appliances and may have to make more major repairs.

The other problem a lot of people have with forclosures is that the banks will not accept a contingent contract. That means if you are selling a house and want to use the money you make from it as a downpayment on a new one, you already have to have the money in hand to buy a forclosed property.

A couple more issues pop up with tax sale forclosures. One is that the people are often still in the house, so you can't go see it. Another is they have a time period after the sale (30 days??) where the existing property owner can still pay the taxes and keep their property. You have to put down a deposit at the time of the sale but you will get it back if the sale gets canceled.

Those are the "catches" I know about, but if you have the down payment and are able to preapproved for a loan. You are not worried about selling another house but have some place to stay until the sale goes through, you can get some really great deals.
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Thanks for this info. I was thinking about the issue of the previous owners trashing the place because they were being forced to leave.

As to time and $$, we are renting currently and can get out of our lease pretty easy so that's not a porblem. We have also been pre-approved so we should be looking good. House just go so fast around here!!!:burning: In NC a new house may stay on the market for up to a year so you can negotiate a good deal even on a NEW house.
 
jazz lady

jazz lady

~*~ Rara Avis ~*~
PREMO Member
Originally posted by carolinagirl
See, that's what I'm talking about!!! :biggrin: Any referrals??
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I'll ask my friend. I don't think the realtor she dealt with is still in business (I believe he retired) but I will let you know what I find out.
 
C

carolinagirl

What's it 2 U
Originally posted by SxyPrincess
What kinda law are you into, Carolina...:bubble: There are a few "wannabe" lawyers on the board...:wink:
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Right now I work in the Environmental Division.:boo: Not really my cup of tea, but it was a foot in the door with a slight raise $$ from where I was. :biggrin:

I have worked in juvenile law, criminal law, domestic law and for a WONDERFUL judge on the Court of Appeals in NC. I liked all of those.
 
C

carolinagirl

What's it 2 U
Originally posted by SxyPrincess
You think you could bring me back a few bushels of crabs? I hear they're real cheap...:wink:
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Aahha. After I posted my reply, I re-read yours and thought "I'll bet that was one of her "snipes" as citysherry so nicely put it!:biggrin:

I'm just a naive little country girl from NC :blushing:
 
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