How many people think?
March 10, 2010 by
Filed under realestate for sale by owner
that the realestate foreclosure crises will never go away.
I mean take a serious look at this crap, i live in a town of 25000 and there are 153 bank owned homes 50 auction homes and 200 preforclosurs. All the folks that lost there homes and now have a foreclosure on there credit, will not even be able to buy a home for the next 10 yrs. Why would anyone want to buy a foreclosure, when there are plenty of good homes for sale by owner. When u buy a foreclosure, u r buying it AS-IS. When u buy a home the regular way, u know what was or is wrong because it says on the disclosure form. When u buy a foreclosure, it is normally striped clean. I think most of these bank owned homes will sit empty for years and years to come.
“Why would anyone want to buy a foreclosure, when there are plenty of good homes for sale by owner. ” Because they are cheaper. I personally would NEVER buy directly from an owner. Not in a million years.
It is very obvious that you are not out there buying foreclosures, because your reality is messed up. I am buying them and they are not “stripped”. They are usually dirty (no shampooed carpet) but that is the only difference. I look at what I am buying and pay for inspectors if I am unsure (I usually buy obvious winners though).
This will “go away”. 99% of the foreclosure are for people who had no business buying in the first place. They can not afford to buy and need to rent.
They can rent from me….even rent the house they used to “own”.
Owning is not a right, it is a privledge, many Americans got confused on that. But, I think they are figuring it out.
I hope you are correct and this goes on for a couple more years at least.
And I am doing something about it. i am buying as many properties as I can in the next year. A good crew can fix an entire house in a week or less, not that expensive.
Then I rent them back to the previous owner at half their old payment.
you’re town is about the size of Vicksburg Ms and it has had over 321 homes either foreclosed or auctioned. To make matters worst the realtors overpriced the real estate market and now they’re having a hard time attracting commuters to live here.And the local press doesn’t want to report what’s going on in the local real estate market. It’s as if they’re trying to keep hush about it. But look up the Vicksburg Market under a Google or Yahoo you will find a lot a homes for sale but hardly with no buyers.
My outlook is different. I believe you’ll see the bank-owned properties sell BEFORE many of the privately held homes. As banks start pricing these homes closer and closer to “Market”, they will disappear. It is already happening in many parts of the country.
However, in the worst areas, (Cali, FL, LasVegas, etc,) it will take much longer. Also, people who have been foreclosed on, in general, will be able to re-buy with a new conventional loan in a couple of years on average – not 10 years. In fact, if they develop any savings, they can buy even sooner by assumptions, or seller-held financing.
Do I think it will continue forever? No. There will always be ups and downs in real estate. It’s the only way for any market to reach equilibrium. I think that the current price correction is allowing people who previously couldn’t afford home to buy one or people like me get the house they want for less money than anticipated. Both sets of people will help funnel the next upswing in the market.
Why would anyone want to buy a foreclosure? In my case, I didn’t, but it happened that the right house was owned by a bank so I paid about 20% less than I planned to spend on my first house. My home wasn’t stripped bare. It only needed a good cleaning and any repairs and improvements that needed to be made are comparable to what would be expected for the age & area. What I did get and hadn’t expected in my first house were a large kitchen with a center island (thank you previous loser’s HELOC!), newer HVAC systems, newer lateral line, and an extra full bath.
Yes, my home was sold in as-is condition, but that’s not exactly unique to foreclosures. Anyone can choose to sell a home that way. Was my home perfect? No. Is a home ever “perfect?” No. I had a home inspection so I knew what I was buying and the amount of work the home needed wasn’t unreasonable. A disclosure only contains the info the owner knows is wrong, and if you find something later that wasn’t disclosed, you have to be able to prove the owner knowingly lied. I don’t put a ton of credence into seller’s disclosures.
Why would anyone want to buy a foreclosure, when there are plenty of good homes for sale by owner? Why would I ever want to buy from an unrepresented seller? I don’t trust people who think they can make such a huge legal and financial move on their own.
By the way, you’re ranting about something that affects something like 5% of homeowners. The other 95% of us are ok so we aren’t exactly newsworthy.