Foreclosures Help Information

Buying Foreclosure In California

Question: Is Buying A House On Foreclosure a Good Idea??

I read that you can buy a home in foreclosure in California for as low as $10,000. But are there strings attached??
Thanks for all your great answers! Especially Mandelyn & Bcauble1. This site is great.

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Answer: Well of course there's strings. Those depend on the state laws and the bank holding the deed.

Forclosure is when someone messed up paying on their house and the bank then possessed it. The selling price is typically the remainder of the balance owed.

When the bank has these properties, they're to pay the taxes, and maintain cutting the grass and things like that. A hassle, so they sell them as quick as they can.

A lot of people do this as a buisness. They buy these houses, and flip them. Because of these people, who work closely with the banks, it is difficult to get the good houses.

Don't mess with a webpage, deal directly with the bank holding the deed. Too many people are trying to make money with this stuff by telling other people about it. So don't become a member of an online "insider" site or anything like that.

These houses are sold "as is" with no inspection. You cannot look inside, only outside.

You have to remember that someone just lost their house. So yes, the bank may be selling it for $10k, but all the windows could be broken, all the appliances gone, tore up floors, or the place could be completely filled with trash.

A friend of mine got one for $21k, and it took 4 giant dumpsters just to empty the house of trash.

When looking at a property, you need to do your research. Be prepared to spend some loot, maybe even triple what you paid, on gutting the house and refurbishing it just to make it habitable.

These are not cute little clean houses that are selling dirt cheap. These are usually houses in distress.

With an entire team of workers, these houses can be done and ready in 2-4 months. But if you don't have a team or a contractor's team on hand... you'll be in for a hassle and high expense.

It's a risk... because you may spend more than you planned, and you won't profit much. That will depend greatly on the location and the market value.

It's not unheard of to get a house for $10-$20k, drop $40k into it, then resell in a matter of months for $150k.

Just have to be smart about it.

Real Estate Investing Tip: Buying Foreclosures

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