Tips and advice for personal finance from the Dolans. This video focus' on how to buy a house in foreclosure.
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Ken: Hi everybody! I'm glad you join me. One of the most common questions we’re getting these days on our national radio show. We hope you get a chance to listen to it. It’s in a hundred markets or you can go to WOR710.com and puts you live. It’s Saturday from, what is it, 10:00-12:00 Saturdays, Eastern Time.
Anyway, one of the most common questions we’re getting is, “Hey Dolans, there’s a great time for foreclosures”. Yeah and do you not being foreclosed on but Dolan I think there are lot—Dolans, aren’t there a lot of great buys out there because you’re telling us at least in concept. You’re have the numbers of telling us that record foreclosures you know seven, 79% over the number of 2006 and some were at the moment about 2.2 million homes are in some state summarily.
Some at the real state, 2.2 million homes across America are in danger of being foreclosed. The sub prime mess continues. People who should never of had mortgages and I'm not trying to private anybody of the American dream. A home owned and you want to own. Simply shouldn’t if had credit. The worst states are California number one, number two can you guess Florida, number three Ohio, number four Texas, and the fifth worst is Michigan have you seen Detroit. It’s a mess okay.
Can you get a bargain and foreclosure? Maybe it’s a first home, you haven’t got a house yet and you didn’t get a lot of money. Yes, the way to do it to buy DVDs and cassettes and books and stuff from anybody can do it and buy a house for $137.00 until you know and sell it for $7 million on those late night TV things you know you can’t sleep at night. It’s 2 o’clock in the morning. You know, that’s not the way to do it because here’s the point, simply stated. If it was that easy to do it while will I have? What will I want to simply sell you cassettes and tapes? If I knew how to do it and it was that easy, what I will simply do is I would do it myself. So the answer is don’t do it that way. Here’s a concern.
The foreclosure market is no secret that it’s a big deal that there are bargains out there but there is intense competition there. Is that bad? No. I just want you to know this intense competition. Many foreclosures that you must pay in cash and there you often you can on and inspect it before you buy it so it’s a little bit like a cracker juke box. What I'm going to get? I know I'm going to get it something, there’s a little price in there. Is it a good one, or a bad one? So you often cannot inspect.
So those are some of the things to be concerned about some of the dos. I am not saying don’t do this. I am not saying don’t consider foreclosures. I'm just saying be careful.
You want to deal with the buyer’s agent represents you not the seller, not the bank, not the seller. A buyer agent who was for closure experience number one and foreclosure experience in your area number two. The important to have somebody on your side, maybe even on returning because very, because the loss and the legal processes, there is widely from state to state and some states, they originally looking get back into a certain period of time a few she makes up—believe me it can be a mess. So states vary. What I suggest you do and hardly suggest you do is attend the foreclosure auction. You’re going to look on the paper almost any paper. Attempt of foreclosure auctions to see how they work. Lots of paper work, be ready.
In buying for a closure—my bottom-line is its very tricky business. Can it pay off? Yes. Does it make sense to learn about? By the way get your pens we’re going to record of the book there in a minute. Does it make sense to consider it as an investment possibility or as a first home possibility? Yes, it is simply not the easy throw the dart of the paper and buy it. It either moving to whether the great bargain or sells it at a triple or quadruple profit in two and a half minutes, just be careful. If you want to know more, we think one of the very best ports is called buying real estate foreclosures. And she’s been in our show number of times. Melissa Kollen-Rice, Buying Real Estate Foreclosures. Worth looking at? Yes. Tricky? Yes. Competitive? Yes. Worth the effort? It probably is but be careful.