Foreclosure

[juliennepeters]

I purchased a foreclosed home about a year ago. What I learned is that in my case, the bank would not negotiate a price for 60 days following the listing. If you want to wait and risk not getting the house, that is an option. I also had a pre-approved mortgage though a mortgage company, I don't think that it made any difference to them what kind of house I bought as long as it passed the inspection. Be prepared to deal with some cosmetic damage, like switch plates and light fixtures missing. In my case, the house had been left vacant, and the pipes had burst. Be firm in insisting that this kind of damage be repaired BEFORE you close on the house. The cosmetic things you will probably have to take care of yourself. A little time at the local town hall can also be beneficial, in checking out how much comparable homes in the area have sold for, then you will know whether you are getting a bargain.
Real Estate Vietnam

[DanL]

My experience has been in buying "as is/where is" for a steep discount with all cash. This gets the bank what they need, with minimal hassle for them and a better price for you, with minimal hassle for yourself also since you don't need to waste time with your own lender's requirements either.

It's probably not common but perhaps it's possible that one lender would agree to make repairs to satisfy the requests of another lender that is bailing them out, in my mind this would drive up the cost of the property and drive your profit potential down? Also, the competency of lenders, in their own specialty, is in question, how can they manage repairs as well? Repairing a damaged and neglected home takes:

1. skills
2. knowledge
3. experience
4. equipment
5. materials
6. time

(money helps, but only to the extent that it can buy those 6 things) I just don't see a banker pulling it off, in much the same way I'm not going to start offering checking accounts or other similar services...not my skill set!

If very little is wrong, how do you add value and profit from the transaction? If you want to do this and have a chance to make a profit, the more problems, the better. That's my rule and it makes sense if you think about it, less competition and more chances to add value = greater profit potential.

I agree that waiting until the bank has sat on the property for awhile will gain more flexibility in terms of price, but it's all over the map. Sometimes they sell shortly after they list for more than the asking price, I favor paying 1/2 of that price after 6 months have gone by. True you will lose some deals this way, but the ones you get would be better deals IMHO.

[stegner00]

There's a foreclosed Property in Vietnam I'm interested in acquiring. What are the pros and cons of buying a foreclosed property ?