Have you thought about checking repossessed houses? The impression for repossessed houses is the cheap price. But if you will look deeper, it is not really the price that should only matter. Over here, we have the superstition for such repossessed whether cars or houses. They are unlucky to the owners hence they were loaned and forfeited for non payment of installments in favor of the bank. However, there are repossessed houses that are really cheap and no strings attached. Just food for thought of those planning to check on repossessed real estate property.
Part of the problem with foreclosures here in the states is that many of the properties were left abandoned and the condition of the property could now be questionable. There have been instances where the previous owners left when the bank took over, and the bank never bothered to even secure the property. The result was vandalism, pipes being scavenged for the copper and just about anything else that could have been of value. Sometimes squatters get in, sometimes other creatures take up residence. just because it is cheap it may not be a deal, it can cost tens of thousands of dollars to make these places liveable again. Equally of importance is in condo's the price might be right for a new or older condo, but you have to do your research, if many of the units are empty due to foreclosure or simply not being sold you can find yourself paying monthly fees that are just ridiculous for what your truly own. That's the way it works with some real estate, you have to be aware whats going on.
@My401K, there is a foreclosed house right here in our street. It was forfeited by the bank in lieu of the unpaid loan of 11 million pesos - around $300,000. After a year, we noticed the deterioration of the house since no one was minding it. Perhaps the bank also saw that so they have posted someone to stay in the house for maintenance purposes. Right now, the house is still secured but no one seems to be interested to buy it. According to the custodian, there was not one prospect who took interest in that house which is only half completed.
When it comes to houses that have been repossessed, I think it can work both ways. While you are going to get a property at usually a relatively cheap price, it's also important to make sure you know exactly what your buying. As already stated, the owner of the house, if they couldn't afford to pay the mortgage, more than likely wouldn't have been able to afford to keep that property fully repaired, and while you will get it cheap, it's important to look at how much it's going to cost to make the house fit for purpose again.
If it's in the location I want and the price is good I would not think twice. Just because the previous owners could not pay for them it doesn't mean the same will happen to me.
You are right on that - what happened to the previous owner wouldn't happen to you. From what I see, banks here are losing in a way because their acquired assets are non-performing (when not sold outright). Houses in their possession are deteriorating and wanting in maintenance after a year of forfeiture. Even our own bank is experiencing that problem (as related to me by one officer in the acquired assets department). What they suggest is to hire brokers to speed up the sale of those real estate and cars.
Here in the UK, repossessed houses are usually sold at auction. Prior inspection will determine the state of the property and the final selling price will reflect the amount of work needed to make the place habitable again. So whilst there are undoubtedly some amazing bargains to be had, there's every chance you could end up saddled with a bottomless money pit if you don't do your research or "buy blind".
The government bank here is also auctioning repossessed real estate - house, apartments, small building, big building, lots, farms and any other real estate property that the government bank had forfeited in its favor. My husband's uncle had been joining the bidding before and even offered us to join because we have no house at the time. However, the property for bidding is not clearly defined in the schedule. That means we have to be there in the bidding venue but not sure if what would be on the bidding table is appropriate for us.