WWS12D? NBR

plus12012 · March 2014

DH sent me a link to a house that he had come across the other day. It is 100% my dream house. We aren't in the market for a house right now. We really weren't planning on even looking for another 4 years or so but, this house is a foreclosure with the asking price about 250,000 below the value and for a foreclosure it is in immaculate condition. It's in a neighborhood that we probably would never look at because a home there would be beyond our comfort level payment wise. So, the question is would you think about buying it ? It may very well be the only chance we have to own a home like this or would you just forget about it and stick with your original plan of waiting a few years and keep your fingers crossed that there will be something you really like on the market at that time?

MarisaKathleen · March 2014

It certainly doesn't hurt to look at it! Just keep in mind that foreclosures can take a long time and be a headache. If you guys didn't have plans to move right now and aren't in a big hurry, it might not be bad to consider.

Just make sure you can afford the taxes and what not considering after you guys rehab some of it, the value will go up again. :-)

melody921 · March 2014

I would definitely consider it. What's the harm in looking and seeing if it's something you want to pursue? Sometimes life gives you opportunities when you least expect them. I know in our area, it's unheard of to find a foreclosure that looks good, so that alone could sway me.

tinyhumantoe · March 2014

I'd go look at it with zero expectations and see how you feel after that. I feel like you'll know.

I would buy my dream house on dream land right now if it came up for sale. We want a piece of land and haven't found the right one in the last 5 years of keeping our eye out. If it came up, hell yes.

We aren't looking and don't plan to move for 3ish years.

AKB090609 · March 2014

I agree, go look there is no harm other than possible disappointment if you don't get it.

plus12012 · March 2014

Sahara78 said:

I would also consider it, if you have the money for a down payment & moving expenses now. Why were you planning on waiting 4 years? That might sway my decision, but it doesn't hurt to at least look at the house. Before we bought our current house, I know there were several I liked based on pictures and the outside. Once we were inside though, the houses weren't really what we wanted.

Hope it works out!

DH's 2 older girls will both be over 18 in 4 years and he won't be paying child support anymore which will be a considerable addition to our monthly budget. We also want to move and be settled in our forever after home before DD starts school so that she won't have to switch districts.

Hyaline · March 2014

dimples12 said:

I second the others in pursuing without getting too emotionally wrapped up. We wouldn't have bought this house if DH hadn't driven past it on a whim. I would also consider taxes, upkeep (is sq footage bigger than anticipated), down payment options. There may be a benefit to buying now vs. 4 years if the interest rates were to go back up. The latter is what really encouraged us to bite the bullet last year. We were able to go up 100K in price range based on a monthly payment from when we first started looking to when we bought because of interest rate. Good luck!

Exactly the bolded.

And remember, it's not a good deal if you can't afford it, no matter how much you "saved" on what it would have cost originally. I would advise crunching the numbers before looking at it, so that you know exactly where you stand and aren't influenced by how much you love it or not.

hmp1 · March 2014

No harm in looking. Couple of things to keep in mind with a foreclosure. If it is priced that low and worth it, it will probably have multiple offers and sell for more than the asking price. Foreclosures don't normally take long to negotiate and close in my experience. It isn't the same process as a short sale, at all. The bank will most likely not accept any contingencies for selling an existing home, not sure if you currently own. And they most likely will not do any repairs found on the inspection report. So if it needs a new roof, that $10k or whatever is totally on you. And finally, most banks list the foreclosure property at a % of the appraisal/BPO (broker's price opinion). So it is doubtful it is actually worth $250k more than the list price unless you are looking at a million dollar home. And like pp said, taxes are paid on the value not your mortgage amount.

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