Jacksonville, Why Are You Wasting Your Time Trying to Buy That Foreclosure?

Buyer, Foreclosures

Buying A Foreclosure At the Courthouse Steps Is Risky and Wasteful



90% - 95% of the Time You Get A Better Deal Before the Home Goes to the Courthouse

Here why...

You Will Pay More Than Mortgage Value for The Home If You Want the Home

The Bank is going to bid what they have owed to them on the house.  This will include:
If the mortgage amount plus all the other fees are greater than the market value then you won't want to outbid the bank because you will be paying more than market value!

Very Few of the Courthouse Foreclosures Are Actual Deals

I know many people who have been buying foreclosures at the courthouse steps for years.  They tell me currently maybe 5, at the most 10 deals they see out of every 100 homes have a mortgage below the market value of the home.  So you will have to sift through 100 foreclosures to find the 5 to 10 deals.  Then you will have to compete with the foreclosure experts in buying these few homes.

Get A Better Deal Through A Short Sale in Jacksonville

However, if you can get to the homeowner before the sale goes to the courthouse then you may be able to strike a deal with them.  They may not yet owe as much in attorney fees, back interest and penalties.  But more importantly, the bank may accept a short sale.  Meaning the bank may accept less then the total amount owed to them because they won't have to go through and pay for the foreclosure proceedings.  In addition they will be getting paid quicker on a bad debt. 

Where is the Risk at Buying at the Courthouse?


You don't get an Inspection Contingency (or any other contingency)

You are not allowed to inspect the house before hand.  You have no idea of what sort of repairs are needed.  If you find a problem after you buy it is up to you to pay to fix it. 

You Buy the Property As-Is


You can't hold the bank responsible for any undisclosed material defect because you bought the property as-is.  Any problems are you problems to fix.

For this very reason alone it is better to buy the house as a short sale or a foreclosed property.  You can at least make those offers contingent on an acceptable inspection so you have some idea of what you are walking into!

One last tidbit...

You May Have to Evict The Previous Owner

Sometimes the bank doesn't do this for you.  Depending on how you handle this the house might be in worst shape then you thought.

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Date: 2008-03-09 15:10:00
Views: 815