Posted by chris on March 22, 2000 at 03:16:57:
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Who owns the property that has been foreclosed on? Is it a bank REO, HUD, VA…?
-Chris
New and I am loaded with questions - Posted by maria
Posted by maria on March 21, 2000 at 21:20:34:
Well here it goes. I found a property not far from my kids school in a really great area. It is a forclosure Priced at 41,000…avg house in that area goes for 52,000. The house needs some work but nothing that could not be handled while we are living in it. However I will have to do some investigating as this house seems to be the only one like it in the area. It is a 4br about 1600sqft. I would like to purchase for myself but I have some late payments on a few bills due to the fact that I was out of work and things kind of fell behind. I am however trying to get things back on track. But with no money to put down and being fairly new at all this REI stuff I was wondering if anyone had any ideas on how I could get the sellers attention to consider a deal. We are currently renting and have been here for the past 2 years paying rent without fail. Any idea how we can get into this house with no money down? This house is listed by a realtor, should I go straight to the seller or should I trust that the realtor will ask about Lease options on my behalf? Any other suggestions?
As I said I am new to all this…Just purchased my first rei book and between that and this site I have become a rei addict. Can’t wait to get to the $$$ part of all this, I won’t be able to contain myself then.
Re: New and I am loaded with questions - Posted by Maria
Posted by Maria on March 23, 2000 at 22:06:40:
thanks for all of your advice. btw this is a bank foreclosure. I have spoken with the realtor who has informed me that this home will go for about 65,000 if when repairs are made.
Again thanks for your time.
Maria
options for first time homebuyers - Posted by Anne-ND
Posted by Anne-ND on March 22, 2000 at 10:02:34:
Maria,
Being a first-time homebuyer, and eligible for FHA
loans is one of the few times when you can profit by being less creative. If you qualify, you can get a 97% (or even 100%) loan. And it is easier to qualify for these loans than any future loans (debt to income ratios, etc.) You can also get a 203K loan for
rehab if you will be an owner-occupant. There are some excellent books available on being a first time homebuyer, such as “100 Questions Every Home Buyer Should Ask”, and a few other similar titles. There may be a new homebuyers class in your city- there was in mine, it entitled me to $100 off my closing costs, and told me about some local grants available to moderate-income families that I was eligible for (for that last 3% of the loan).
Also, if you’re going to find a realtor, find one who answers your questions- they CAN be a goldmine, but you have to ask and find someone you like. Don’t be afraid to interview a few to find one who is open-minded.
I’m NOT arguing against creative methods, just making you aware that there are good programs available for 1st timers, and once you start buying houses they will no longer be available, so why not take advantage of them?
You might also consider buying a duplex with 1st-
time FHA, you get the great rate AND an income-producer. Good luck and keep us posted.
Anne
Re: New and I am loaded with questions - Posted by Ed Garcia
Posted by Ed Garcia on March 22, 2000 at 09:00:53:
Maria:
You don’t tell us what state you’re in. As a matter of fact you have given us very
little information in order for us to make any kind of credit determination.
I can see that to you, this is not just an investment, but a home. The value of being
next to the school and in a good area is important to you.
Rather, than me asking you several questions about the deal and about you.
I think it would be in your best interest for you to call me at (909) 944-0199.
I’m sure I can help you.
Ed Garcia
Re: New and I am loaded with questions - Posted by Ed Copp (OH)
Posted by Ed Copp (OH) on March 22, 2000 at 07:46:36:
Maria, You mentioned that the house is listed with a realtor. So where did the concept of going directly to the seller come from? This makes you look like a crook going in. The seller hired the realtor for a reason, so if it were me I would use the realtor, If I was uncomfortable with that I might find another realtor to represent me as a buyers agent. You asked if you can trust the realtor to ask about a lease option, and the answer is NO. The realtor can not read your mind. This is why we put offers in writing. We have the realtor write down EVERYTHING that we want to have presented to the seller…EVERYTHING. The realtor will then present your offer. Just be sure to spell everything out so it can be understood. It is O.K. if it takes a long time to write the offer. It is not written anywhere that this must be done in 10 minutes, so take your time and make your profit going in.
Do not ever try to go around the realtor, it just is not worth it…ED