Quote:
Originally posted by cool_chick
How do you find foreclosures and are they usually dumps?
I'm in the market for a new place (for me) and this is a possible way to go....
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If the foreclosure is not a dump, it's usually very hard to get a good deal. You can approach it two ways.
1) buy a junker, rehab and resell. Create instant equity, but you'll have to put more money down up front. If the house is really rough (I see $$$, then), then you may even have to pay cash for the property.
2) buy a foreclosure that needs little work, get a small discount, live in it or rent it until appreciation gives you a gain. If you choose option 2, I would advise getting a discount of at least 10-15% for the perfect property. You're taking risk buying these properties. You should get a better price for doing so.
A realtor can help you find the foreclosures listed in MLS. If you have an online source for listings, realtor.com or other, preferably better web site, you can tell tell the property is a foreclosure when the remarks read like "As-Is. Buyer must provide mortgage letter or proof of funds."