Real Estate experts

[ReneeA]

DH and I are tippy toeing into buying a home. We own one that we plan to rent out since our family outgrew it years ago and we owe much more than it's worth (stupid Detroit economy).

Anyway, found a house we like...it was a short sale a few days ago, and is now listed as a "preforeclosure" on one website. We can't access the listing on the realty websites as of this minute. Can I assume that it's not been bid on and will be in foreclosure soon?

A few questions:

Will it be more money/less money/about the same once it's in foreclosure in relation to the listing price as a short sale?

Will the mortgage company go in and clean it out? The elderly person that owned it passed away and the house was never cleaned out. The beds were still unmade and looked as if someone had slept in them when we walked through, and there was still all kinds of personal belongings inside.

Can I assume that if we buy while it's in foreclosure it will be an easier process than a short sale? My real estate agent was very hesitant about representing us in a short sale proceeding. He told us all kinds of awful stories about them.

I would ask him all these questions, but he's out of town this weekend and I hate to keep bothering him with the simple stuff.

 

[ReneeA]

Anyone this morning?

 

[golfgal]

Usually a foreclosure is sold as is. If there is a family involved they may clean it out before but if she has no relatives, it is possible you may inherit the belongings as well, especially with the glut of homes in foreclosure now.

Price, it depends. If there were any offers during the short sale that the bank rejected because they were too low, they probably won't take much less then those-see if your real estate agent can get this information.

It is possible that the bank had bids, accepted one and something happened on the buyer's end so that sale didn't go through so don't assume they didn't have any offers.

 

[ReneeA]

I just really hope that this works out for us. The house is really dated - but seems solid and just needs lots of TLC and updating. My DS is allergic to smoke and dust (prior owner was a smoker) and so we'll have to rip up all the carpet and prime and paint the entire thing before ever moving in, otherwise the kid would die of an asthma attack.

It's 2600 square feet, on a huge lot and has a large private owner's only park a few steps away on Lake St. Clair (part of the Great Lakes system). It sold 15 years ago for $270k, and is listed for $119 right now.

I want it. I don't want all the work, but I want it just the same. I guess it's just a waiting game at this point.

 

[golfgal]

I just really hope that this works out for us. The house is really dated - but seems solid and just needs lots of TLC and updating. My DS is allergic to smoke and dust (prior owner was a smoker) and so we'll have to rip up all the carpet and prime and paint the entire thing before ever moving in, otherwise the kid would die of an asthma attack.

It's 2600 square feet, on a huge lot and has a large private owner's only park a few steps away on Lake St. Clair (part of the Great Lakes system). It sold 15 years ago for $270k, and is listed for $119 right now.

I want it. I don't want all the work, but I want it just the same. I guess it's just a waiting game at this point.

Sounds like a great deal. There is a good chance that if it is listed for that much less now that the bank isn't going to take a lot less but even at the $119K with a little paint and some new flooring you are getting a bargain!

 

[barkley]

you mention it has a private owner's park-is this house part of a homeowner's association?

if so you should check with the association to see if the home has any unpaid dues or fines. some (like mine) have wording in their by-laws and ccr's that say when you purchase a home within the association you are assuming any and all hoa indebtedness the previous owner created. generaly, if someone has not been paying their mortgage they also have not been paying their dues, assessments and fines.

scary thing-in all the time i've been associated with our hoa's board, only one potential buyer has taken it upon themself (not initiated by their lender) to check the status of a seller's standing with the hoa.

 

[arminnie]

I had some friends who bid 277,000 on a short sale. It ended up selling for $219,000 for cash after a foreclosure. My friends were going to get a mortgage but could have paid cash. Short sales are so unpredictable. No one knows what the parameters are.