Upcoming Foreclosures

I dont understand foreclosures can anyone help?

Im a first time home buyer and have been looking through the local listings on yahoo real estate and other places and keep coming across homes that are like $15,000 and say they are in foreclosure. I know they arent dumps because they are in nice neighborhoods. Does it mean I can buy this house for $15,000 or is this some gimmic or a catch that im not understanding?

Public Comments

1. Yahoo RE and other programs are grabbing data from a varity of sources. Often the computers mix it up. What you are most likely looking at is the default amount, not a sales listing amount. realtor.com pulls straight from the MLS, you will find the listings there more accorate.
2. It might be a gimic. This home might have anywhere from 1 to 50 offers already. The bank takes the offer and says, I'll get back to you. They look through all the offers and take the best. The process can take months!!! Best advice, contact a realtor. Century 21, Coldwell Banker...doesn't matter. Ask a friend who owns a home if they can recommend anyone. You are in a great position if you are a 1st time buyer. see below. I have listed the tax credit info. 1. Write down what you want in a home. 2. Work with a realtor to help you through the process. The Seller pays them once you find a home. No cost to you! 3. Get pre-qualified by a lender. Shop 2 or 3 for the best rates and closing cost fees. 4. Go look with the list your realtor has put together based on your needs and wants. 5. Make an offer/negotiate. Use the buyers market to help you! Good luck and see below! The First-Time Homebuyer Federal Income Tax Credit *Amount of Credit: The First-Time Homebuyer Federal Income Tax Credit, as modified in the American Recovery and Reinvestment Act voted into law in February 2009 allows for a tax credit in the amount of 10% of the cost of the home, up to $8,000. *Eligible Property: Any single-family residence (including a condo, co-op, or townhouse) may be an eligible property under the homebuyer income tax credit, provided it will be used as the homebuyer’s principal residence. *Refundable: This homebuyer income tax credit reduces income tax liability. The $8,000 tax credit is a clean refundable credit, unlike the one that was passed last summer, which required a repayment. If you qualify as a first-time buyer (i.e., haven’t been a homeowner in the past 3 years), then you can claim the $8,000 to reduce your tax burden. If the $8,000 is greater than the tax you owe, then you will get a refund check for the difference. Example: you owe $2,000 in taxes on April 15, 2010. But if you bought a home before the stimulus expiration on Dec. 1, 2009, then you will get a tax refund check for $6,000 from the IRS. *Income Limit: In order to be eligible for the homebuyer income tax credit in full, the homebuyer can have an annual adjusted gross income of no more than $75,000 ($150,000 on a joint return). A homebuyer with an annual adjusted gross income above that level and up to $95,000 ($170,000 on a joint return) is eligible for a reduced tax credit. *First-Time Homebuyer Defined: The homebuyer income tax credit is designed for first-time homebuyers, which means the homebuyer (and/or the homebuyer’s spouse) can not have owned a principal residence in the 3 years prior to purchase of the eligible property. *Revenue Bond Financing: A homebuyer who utilizes revenue bond financing may be eligible for the homebuyer income tax credit. *Repayment: There is no repayment of the homebuyer income tax credit by the homebuyer. *Recapture: If the eligible property is resold within three years of purchase, the entire amount of homebuyer income tax credit is recaptured on the sale. *Effective Date: The First-Time Homebuyer Federal Income Tax Credit is effective for purchases on or after January 1, 2009 and before December 1, 2009. This guide reflects a modification from the First-Time Homebuyer Federal Income Tax Credit, which remains in effect for homes purchased by eligible homebuyers between April 9, 2008 and Dec. 31, 2008.
3. Dude, with Real Estate, for the most part, if it seems too good to be true, it likely is. It perfectly legal for people to put a low price on their home to entice offers. They might be just trying to hook you in with that price. During a foreclosure the bank is basically trying to get it's money back because the current mortgage holder has not paid for a few months.If no agreement or arrangement can be made with the mortgage holder then the bank will eventually take over the home (which was part of the purchase agreement at closing). Heads up, you have to think from the perspective of the bank, they aren't trying to lose money, so just because the home is being foreclosed on doesn't mean you'll get the home for some ridiculously low price. Consider that the bank has likely suffered a fair amount of fees and lost income during the foreclosure process so taking an even bigger loss is not what they want to do. Now there are some times when the bank is just trying to cut it's losses and you can get away with a steal but usually most people that get homes that have been foreclosed will pay near fair market pricing. Honestly, if your looking for a great deal I'd find some people. Ask some friends and family for some cool and honest real estate and mortgage brokers. Interview them and see which one is willing to go the extra mile to find you what you want within the price your comfortable paying. Ditch anyone trying to influence you towards something more expensive than you want to go (you know, the stereotypical "car salesman" type).