Realistic View on a foreclosure

[needahome]

I need help deciding what to think about a foreclosure.
this is a 2007 Clayton Worthington 1394 sq feet. with all kinds of great assets- sliding door, great kitchen, stainless steel appliances, huge half circle windows in dinette, great master bath with shower and large tub. It's beautiful and sitting on a concrete block foundation, nice new porches.
The people lived there barely 3 months, and had paid 10,000 for the lot, which is .88 acre.
They are asking $55,000 which I think is great! Problem- I've never lived in a mobile home "park"before, it's in a small town and basically lots sold for double wides, nothing fancy. My husband doesn't want to be in a Mobile home area, but I think the price is too good to pass up. We've had it looked at and told it's in excellent condition. I am figuring they paid abt. what, 50, 000 for the home, plus 15, 000 set up, plus readying the land, hookups, etc. I see a savings. What do you all think.

[David Oxhandler]

I don't know what the original price was but the asking price sounds reasonable. No matter how good the deal sounds do your homework before putting your money down.

Most local tax districts have a property appraiser's web site where you can look up previous sales and tax valuations. You can find out what that home sold for previously and if you learn how to work the site what other similar homes sold for recently in that area. That should give you an idea of the market discount you would get buying that foreclosure.

While you are online note the taxes and assessed value of the home. If you do purchase a foreclosure, at a price well under the stated tax assessors value, be sure to contact the tax assessor's office as soon as you can after the closing. Ask about the process required to apply for a reduced assessment... Which will equate to lower taxes for you.

Make an offer conditioned on the outcome of a home inspection and title insurance. Banks sell foreclosures "where is as is". They will not be responsible for any problems you discover after the sale.

To be sure that the home is in good condition, free of hidden defects and to ease your husbands objections, get a professional home inspection. In our area they charge about $180 and go over the home with a fine tooth comb. They produce a text and photo report on the home that notes every existing blemish and fault.

Be sure to use an inspection company that has experience looking under manufactured homes and ask that the report note if the home is level.

I purchase homes regularly and pride myself on my ability to walk thru a home and add up renovation costs in my head. BUT before I give up my money I have an inspection performed. It uncovers something every time. Most often it is an electric receptacle that is not working, or something minor, but not highly visible. Be sure the inspection includes termites.

In some states home inspectors can check for unwanted bugs and pests in others you will need a separate inspection.

I try to get the lowest price I can when I buy a home. Ask how long the home has been on the market, when the last price reduction was, and how much. Many banks drop prices each month 'till they sell.

The bank employee in charge of talking to real-estate agents most of the time can accept a price 10% below what they are asking. If you think the price is good offer 10% or 15% less and let the bank make a counter offer.

If the home has been on the market longer than 6 months and you think you can negotiate a great low price, go for it. Be prepared for the possibility of some time before you get an answer. That bank employee will need to buck the decision upstairs. If you have the time to enjoy the game you have nothing to loose. There are thousands of great foreclosure deals available in every town in America.

Title Insurance - not very exciting but never buy real-estate without it. In my area it is customary for the seller to buy and pay for title insurance that passes to the buyer with the deed at closing. In some areas it is up to the buyer to find title insurance. Either way, title insurance is a must!