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  #1  
Old 03-04-2007, 02:24 AM
N8ARW N8ARW is offline
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Location: Girard, OH, USA.
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Default Real Estate Foreclosure/Purchse Questions

I'm looking into purchasing a 1,300 sq. ft. century home that has been foreclosed on. Here's the history/info, house sold for:

$39K Oct. 1988 Owner #1
$100K June 1999 Owner #2
$200K August 2003 Owner #3
$80K Feb. 2006 Mortgage Co.

Full Mkt. Value $105,900
Taxed Mkt. Value $105,900

Back Taxes owed $3,800

Quest. #1
What is the $80K showing for the mortgage company?
I'm thinking the $80K is what the mortgage company paid at sheriff sale to purchase the property back. Not really an actual money transfer, but on paper. Assuming Owner #3 paid $200K and put down $50K, the mortgage would have been $150K. Owner #3 defaults and the property goes to sheriff’s sale. John Doe at sheriffs sale bids up to $75K, mortgage co. bids $80K and keeps possession of the house to sell for what they can get. The $80K would be on paper as they already have the $150K in it.

Quest. #2
What do you think would be a reasonable offer would be to make?
The place had been listed at $199,900, it has been reduced to $139,900 and mortgage co. (out of state) is looking to move this property and is willing to accept offers.
House needs: foundation work, new roof (shingles), gutters and downspouts (missing), hot water tank (old) and furnace (not working). I am an engineer, have identified the problems and the repairs required will be in the 35K range. House interior is actually in good shape other than some plaster cracking due to the foundation issue.

I'm looking here because I know there is a lot of good opinions, information and insight on WC.....Thanks!!!
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  #2  
Old 03-04-2007, 05:42 AM
bountyhunters bountyhunters is offline
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Location: louisville, ohio, usa.
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Default RE: Real Estate Foreclosure/Purchse Questions

I:VE bought /sold repo's for yrs . this sounds like one I:D run from . you say it needs 35k in repairs . well thats a good guess . but what about the repairs/over runs you don;t see? another 15k? your looking at spending more than you;ll make . in my opinion the repair list is to high . just my .02cts worth, p/s keep looking theres hunderds of them out there.
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  #3  
Old 03-04-2007, 06:44 AM
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perchjerker perchjerker is offline
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Location: Farmington Hills, Manton MI
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Default RE: Real Estate Foreclosure/Purchse Questions

hang tight on this. My wife does foreclosures for a living. I showed this to her, she said its not as easy as it seems. When she gets back from church she will give you information on this.

thanks



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  #4  
Old 03-04-2007, 07:15 AM
chadk66 chadk66 is offline
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Default RE: Real Estate Foreclosure/Purchse Questions

If you can document 35K worth of repairs that need to be made, I'd offer them something around the appraised value minus that amount. They'll never take that, but that would be a good starting point. Remember anybody buying it unless they pay cash will probably have to have an inspection. So hopefully the inspector would find the same issues you did. My dad bought a house across the street from him in minnesota. The mortgage company was starting foreclosure proceedings on it. The owner had neglected it fairly badly. However, it was mostly cosmetic. He knew the owner fairly well and got him to sign on the line to allow him to deal directly with the mortgage company before the foreclosure was complete. he paid them 95K cash for the house and spent 15K and his own labor to fix it up. He sold it within 2 weeks of listing for 215K. That was a nice return, although probably rare.
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  #5  
Old 03-04-2007, 07:35 AM
N8ARW N8ARW is offline
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Location: Girard, OH, USA.
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Default RE: Real Estate Foreclosure/Purchse Questions

Thanks for the input so far....I appreciate the feedback...
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  #6  
Old 03-04-2007, 01:35 PM
unlogged Mich_fish
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Default RE: Real Estate Foreclosure/Purchse Questions

Perch, Where do you look to find the foreclosures?? Call the bank??? IS there a central site?
Thanks
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  #7  
Old 03-04-2007, 02:08 PM
Tom B Tom B is offline
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Default RE: Real Estate Foreclosure/Purchse Questions

In the St Cloud area, the sheriff's auctions are listed in the classifieds under "notices."

Tom B
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  #8  
Old 03-04-2007, 03:52 PM
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Shellback Shellback is online now
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Default RE: Real Estate Foreclosure/Purchse Questions

I'd be interested in PJ's wife's reply. I think it's very rare that there would be only one lein against a house that the owner defaulted on. A sherff's sale may only satisfy one of them, and a purchase from a mortgage company may still leave you with other claims.
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  #9  
Old 03-04-2007, 04:03 PM
Burr Burr is offline
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Default RE: Real Estate Foreclosure/Purchse Questions

IMO, you've said the key word that would either turn me away, or be looking for nothing but bargains. Foundation problems.

No matter what you do on top of a bad foundation, it will be devalued. Unless, you plan on jacking up the house and putting in a new foundation.

The price swings on that home are unreal - I'm not far from your market, something seems really odd.
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  #10  
Old 03-04-2007, 04:35 PM
chadk66 chadk66 is offline
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Default RE: Real Estate Foreclosure/Purchse Questions

what exactly are the foundation problems, I'm a builder and may be able to offer up a better opinion if I know more facts regarding foundation.
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