real estate advice...

[jtt]

I am in the market for a new place, Im living alone, in a single room apartment, and its old, its got lead paint, popcorn ceilings, and its just too small. Not to mention that the complex has a "No furniture containing water" and "no pet" rule, so the fact that I even have a 12g tank is in violation of my contract. I asked the property manager about it, and she wasnt too into the idea of a saltwater fish tank, but she eventually just said as long as it doesnt bust then she doesnt care and wont kick me out. nevertheless it is still in breach of my contract.
Its time to get a bigger place (...and a bigger tank

) So now that I have a new job (that pays well) I think its about time to stop throwing away my rent money to this apartment complex when I could be using that rent money to pay off a m o r t g a g e.
Also, you know what, I hate not having a dish washer, they wont let me get a dish washer, even if I buy it and get it professionally installed. And you know what? I hate using a communal laundry room! I gotta pay $2.50 per load, in a super old washer that like, doesn't fit much of any clothes in it. and If i am 3 minutes past the washing time, then my clothes (and unmentionables) are unceremoniously dumped on the floor. Its time to get a new place.
My question is this, I have recently just heard about the possibility of purchasing a house that is going through foreclosure... Has anyone done this? what are the pros/cons? I hear that its cheaper, but then the house is destroyed and requires a lot of work... thoughts?
Im not gonna lie, Im clueless when it comes to real estate, so Im just looking for some insight...

 

[scotts]

Just some quick basics. If you can afford rent then you can afford a mort,the problem is the down payment. (these are old rules) you used to need 10% down, then the payment would be about 1% of the balance. Rates are down so the payment maybe less than that. Depending on where you work you should be looking in Port Hueneme, Oxnard, Moorpark. I think you could find some good buys there.
Foreclosures are not really that good of a deal. The bank wants as good of a deal as they can and people thrash them before they leave.
If you are in the area, or even give him a call. Glen Scalise at the Century 21 Rolling Oaks office here. He is the realtor I have used and will take the time to talk to you about what you can and can't afford. You are out of his area so he will not hard sell you (he does not do that anyway) he will just give you info.
Gotta run
Scott

 

[jtt]

well I work in Simi Valley, but I live in Port Hueneme. I would LOVE to find a place in Thousand Oaks, but I know its heaps expensive to live out there...

 

[stdreb27]

They can still do 0% down and all that stuff. Fanny and freddy are still in business. Just make SURE they verify your earnings...

 

[dragonzim]

Also, do yourself a HUGE favor and DO NOT go for an interest only or ARM type m o r t a g e!!

 

[darknes]

I recently bought a house, and foreclosures can be a good deal sometimes, but you REALLY need to make sure you know what you are doing. Oftentimes, when a family is evicted due to foreclosure, they will trash the house or will have let it go to ruins. Also, if you buy a foreclosed home at an auction, you are responsible for any liens that are on the house. Now, if you buy a bank-owned home, you are guaranteed a clean title (the bank will clear off any liens after they buy the foreclosure).
Another option is to buy a "short sale". This is when the seller is offering the home for less than what they owe on their mort gage to avoid going into foreclosure. The problem with these is that it can take months for the bank that owns the mort gage to accept your offer to avoid the costs of foreclosure...however, you can sometimes get a good deal.
You should talk with a mort gage company first and see what you can afford (if you have a good realtor, they will usually suggest one). I would look into federal loans which have a lot of bonuses for a first time buyer, such as 3% down-payment.
Also, if you are buying something that needs a little work, there was a bill passed by Congress this year that allows first time homebuyers to take out up to a $7500 interest-free loan from the government (after 2 years, you pay back 500 a year with no interest). I think this is in effect for anyone that buys a home through the middle of 2009.

 

[scotts]

Simi is an affordable place also, although it gets hot in the Summer.
The traditional way to buy a house in CA is to start with a condo, make a bunch of money when you sell it in 3 to 5 years and then move up to a house. Don't discount that, I started that way.

 

[maryg]

I am a licensed Realtor (in Florida). Just research and do your homework. Get a decent Realtor that wont stear you in the wrong direction. Get pre-approved from your bank. And most of all if you find something get an inspection. You might get a great deal on a foreclosure but make sure your Realtor has it contracted "pending inspection". Try to stay on the lower end of your spending alotment because market conditions might still be dropping and you can easily get in over your head. Good luck!