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Buying a house foreclosure/Bankruptcy?

I am looking for a house and just joined www.foreclosure.com and I am a bit confused on how to go about buying a Bankruptcy house. I get the foreclosure cause it has the price and also the realtors phone number.

But the Bankruptcy has the Attorney Phone and the Trustee Phone who do I call and how do I ask....I am a bit confused. I also see on the page how it says Properties that are listed as part of a bankruptcy filing are often subject to liens and potential inconveniences that you must take into consideration.

Will they tell me that when I call and do they know any information on the house like bedrooms and stuff...and are bankruptcy often cheaper?

Just wondering thanks so much!

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  • 1 decade ago
    Favorite Answer

    Ok I am sorry to be the one to tell you that the web site you just became a memeber of is a waste of money. No worries though just don't re up when it comes time and use it to see what the foreclosures are going for in your area after it goes through a bank and to a realtor. This will give you a good perspective on the area so you know what to expect out of your home for a buyer to feel like they got a good deal. This will afford you a quick turn.

    I am going to tell you the best way to buy and sell foreclosures isn't on a website it's at your local tax office. Go to your local court house and go into the tax office and take a look at the foreclosure docketts within. These docketts will tell you all the foreclosures in your area. It will tell you there names, address, when they opened the note, how much they borrowed, who they borrowed it with, and lot information for the home. These are homes that have not yet been taken by the bank and fixed up,marked and in turn then the realtor marks it up too. You can look through hundreds of foreclosures each month in your home town. I live in a smaller town and there is always an overload.

    Now I am going to answer your question about "subject to liens and potential...etc" This simply means they are not going to garauntee that ther is no liens against other than the banks lien. In other words the bank might need to get $50,000 out of it and the realtor wants to get $85,000 out of it, but the state could have a $25,000 lien on it for back taxes. Or a previous owner might have done a second owner finance lien on the home for $15,000. That amount will be attached to what ever purchase price you agree to. So if you purchase this home you will be responsable for all liens that must be paid at date of sale.

    The way to get around this is once you find a house that you are interested in buying, assess the damage and make sure it's the one you want and get what's called a gauranteed title search. If it comes back clean and something pops up at closing you are not responsable for the lien the title company will be. The only way this is null and void is if you buy your home on the court house steps the day of auction. You will only pay the amount agreed on at the steps.

    When you search your local dockett look for homes that the loan was opened more than 10 years ago minimum. This will insure that they have paid a large amount of the loan they opened. If they bought the house ten years ago and took out a 20 year note on it (which will be in the information you look up) they already paid it half off. (theoretically or close) Also if they bought it ten years ago the value has gone up. If they bought it for $50,000 ten years ago and paid half off, they owe $25,000. If it was worth $50,000 ten years ago it's worth $100,000 now. They owe 25 you just bought a home at 25 cents on the dollar. I recomend you never buy a home for more than 45 cents on the dollar. This way if by some chance your market has a crash ( like Detroit just had) you will be able to either hold and rent for more than your payment or sell and move on.

    I know this was a little long winded but I hope it helps. If you have any questions feel free to e-mail me anytime. bcauble1@yahoo.com

    Hope this helps...Good Luck!!!!!

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  • Anonymous
    6 years ago

    For a very similar situation a found a great solution at: SAVE-FINDER.NET-

    RE Buying a house foreclosure/Bankruptcy?

    I am looking for a house and just joined www.foreclosure.com and I am a bit confused on how to go about buying a Bankruptcy house. I get the foreclosure cause it has the price and also the realtors phone number.

    But the Bankruptcy has the Attorney Phone and the Trustee Phone who do I call and how do I ask....I am a bit confused. I also see on the page how it says Properties that are listed as part of a bankruptcy filing are often subject to liens and potential inconveniences that you must take into consideration.

    Will they tell me that when I call and do they know any information on the house like bedrooms and stuff...and are bankruptcy often cheaper?

    Just wondering thanks so much!

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  • 4 years ago

    You should take a look at the options you can find at: HTTP://HELP.CREDIT-AND-FINANCE.COM RE How long after a foreclosure/bankruptcy can you buy another house? How long after a foreclosure can you buy a house? A realtor told me people buy a house a year after a foreclosure. Is this true? I have lived in apartments for 3 years with no late payments (good rental history). Unfortunately I made a critical mistake (call it being young and dumb). I bought a house when I was 21 and decided that it was too much for me. Instead of selling it, I turn my house over to my parents who are landlords for other properties in the area(they were to keep all the profits when if they/I decided to sale it). To make a long story short, they ended up losing their business and are now stuggling themselves. So they let my house go under without telling me and now it's on my credit listed as a foreclosure (I found out 6 months after the fact). :( I'm debating on rather to bankrupt or not... I want another chance at home ownership (now that I am older and more responsible). What should I do? How long before I will be able to buy again?

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  • 1 decade ago

    If this is your first home buy and you are doing this alone I would be VERY CAREFUL. This can be so much more trouble than you even dream of. It doesn't sound like you know enough. Yes there can be any # of liens, tax liens(unpaid property tax,IRS etc), contractors liens,and so on. "They" are not on your side but instead out to make as much $$ as possible because for whatever reason they need to unload this house. Also major point what is the real condition of the house....a house can look OK outside but be almost ready to fall apart inside. Hope this helps. It can be fine but there are a lot of pitfalls.

    Source(s): Experience.
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  • All homes that are in foreclosure and bankruptcy have liens and fees involved with them. This is due to the bank wanting its money and if the former owner had tax liens that need to be taken care of. You can go through a title company to find out the tax liens.

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  • Anonymous
    1 decade ago

    The majority of houses in bankruptcy are not sold. If they are sold, they would be sold at trustee sale. You would contact your local US Marshall's office for information on these sales. They should be listed online and in the telephone book. Just as with a Sheriff's Sale, the US Marshall is going to have little information regarding the property or its condition. They will usually provide an inspection period prior to the auction.

    Best of luck to you.

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