Two examples of great deals on Foreclosed properties in Gwinnett County. The two homes shown below were available as of Tuesday, 8/19/2008:
Asking price of this Dacula 3,200sq. ft. foreclosure is $210,000, Market Value is $261,000 per tax records.
Asking price of this Lawrenceville 2,233 sq. ft. foreclosure is $200,000, Market Value is $225,000 per tax records AND this one has a full basement.
If you are looking for some incredibly good buys in decent housing, you may want to consider looking into purchasing foreclosed property.
There are a couple of things you should be aware of before you start. Most foreclosures are either Bank owned or, in the case of HUD homes, government owned. A HUD home is an FHA loan that has gone into foreclosure. To find out more about HUD homes, click on the "HUD Foreclosures" button on our main page.
In a Bank-owned foreclosure, you are dealing directly with the Bank that lent the money to the people that were foreclosed on. Since the Buyers couldn't make their mortgage payments, the Bank essentially repossessed the home. The Bank now owns the house but doesn't live in it. Foreclosures are almost always vacant.
Since the Bank never actually lived in the house and probably never saw it in person, they will be selling it "as-is" and won't provide a Seller's Disclosure of any known defects as is required when an Owner/Occupant sells his home. The Bank will usually require the new Buyer (you) to:
1.) Use their Closing Attorney.
2.) Use their Purchase Contract.
3.) Provide an Earnest Money check of at least $1,000 in certified funds.
4.) Be well qualified to get a mortgage. They got "burned" once on this house---they don't want it to happen again.
Generally speaking, contract negotiations take longer when you're dealing directly with the Bank and it's hard to get any updates from them about how things are going. You have to be more patient during this process. The upside of all this is that, once all the requirements are met, the Closing goes quickly and smoothly.
Bank-owned foreclosures, or REO's (Real Estate Owned) as they are sometimes called, are very popular now and the good ones go fast. My recent experience has been that often there are multiple parties making offers on the same property that you want. My recommendation is, if you really like the property and the price is right for you, make a full-asking-price offer but always ask for help with Closing costs (at least $3,000 or more).
Make sure you have at least a Pre-Qualification letter in hand BEFORE you start to look. A Pre-Approval letter would be even better. Don't forget the $1,000 cash you will need to even make an offer. You should write a check for the earnest money but you have to have the CASH in the Bank. It can't be money you borrowed from someone, either.
If you need help finding foreclosures or someone to guide you through the process from start to finish, let us help you.
rontmay@bellsouth.net |