Good time to buy a home in US?

[Valve Bounce]

We just had a program on TV and it was about purchasing foreclosed homes in the US. I just wonder what our American forum members think of this iea and whether they have any comments.

I would like my daughter to buy her own home in the US West Coast.

[anthonyvop]

That is what I am doing.
It is a buyer's market.

[Jag_Warrior]

We just had a program on TV and it was about purchasing foreclosed homes in the US. I just wonder what our American forum members think of this iea and whether they have any comments.

I would like my daughter to buy her own home in the US West Coast.

You mean the idea of purchasing a foreclosure from a bank?

It's a good time, in the sense that rates are historically low and prices are down (still falling in some places). Does your daughter have any experience in real estate transactions? The first thing she should do is select a reputable mortgage company or bank and get pre-qualified: what does her credit look like, what can she afford, etc.? The second thing she should do is interview agents and pick one with a good local reputation, who has some experience dealing with bank REO's (real estate owned) and first time buyers (assuming she is a first timer).

The thing to remember about foreclosures/REO's is that they tend to be sold "as is". So it's VERY important to write a contract with enough contingencies that she can either get out of the contract without penalty, or ask for additional concessions if the home inspector finds significant problems with the property. Never buy a home without an inspection, especially a foreclosure.

Conventionals are tougher to come by if you need to go above 80% financing right now. But FHA is a good program and the required downpayment is minimal (less than 5%). And a good many states have first time home owner programs (often you can combine them with FHA) that are fantastic.

If she wants to go for a foreclosure, she'll just have to have some patience, cause banks don't get in any hurry n responding to offers, and sometimes they'll sit on offers to get a better price from someone else. Always best to put an expiration date/time in the offer... otherwise it remains a valid offer until you rescind it in writing.

Good luck.

P.S. Has she considered buying a duplex property, to also collect income and gain additional tax benefits?

[Roamy]

We just had a program on TV and it was about purchasing foreclosed homes in the US. I just wonder what our American forum members think of this iea and whether they have any comments.

I would like my daughter to buy her own home in the US West Coast.
It is a excellent time to purchase a home. However in doing so you should be aware:
1. We could have a 2 recession.
2. You should be comfortable with your ability to produce a income for the next 5 yrs. Put as little down as possible and BUY BUY BUY. Then save enough money and pay that mortgage off!! Own you home is cool.

[Mark]

In the UK we've now seen 7 months of price rises, looking at the graphs it looks like when we purchased our house, in December last year, it was pretty much the bottom of the market.

[edv]

I saw on TV that some clever real-estate agents actually organise bus tours of foreclosed properties (in places like San Diego and Florida) and business is good (mostly Chinese clients with wads of cash)

[GridGirl]

Mark, you show off :p

I dont know what rules bankruptcy rules are like in the US but in the UK debt often stays with the house. My mums old next door neighbours didnt pay the mortgage or various other debts and basically did a moonlight flit one day. The new people that moved in later have had loads of problems with bailiffs coming to the door wanting money that they dont owe. They've also had trouble getting credit because of their address too.

[Jag_Warrior]

I dont know what rules bankruptcy rules are like in the US but in the UK debt often stays with the house. My mums old next door neighbours didnt pay the mortgage or various other debts and basically did a moonlight flit one day. The new people that moved in later have had loads of problems with bailiffs coming to the door wanting money that they dont owe. They've also had trouble getting credit because of their address too.

In the U.S., liens filed against real property (taxes, mechanics liens, etc.) do stay with the property. As far as (personal) bankruptcy is concerned, that may or may not affect what liens are against a property. But that is separate from the foreclosure process here. One might go into foreclosure without going into bankruptcy - or go into bankruptcy without going into foreclosure.

But you raise a good point: especially with distressed properties, it's very important to get all the proper title work done. But as part of a conventional or government financing closing, that sort of investigative title work is done - mainly because the bank wants to ensure that it's in first lien position. And conveyance of free and clear title is generally a condition of closing.

For financially stable people with vision, a strong stomach and some level of patience, this is an exciting time to get involved in real estate. We have a lot of paranoid schizoid Chicken Little types here in the States ("Oh, the sky is falling! Capitalism is coming to an end! Run & hide! Run & hide! The gubment troops is coming to take all our stuff and unplug Grandma!" :rolleyes :) . But here is where I am happy to be able to agree with the lovely (and very bright) Ivanka Trump: this period of economic downturn will produce dynastic fortunes, for those brave and smart enough to take advantage of it.

[anthonyvop]

If there is one more piece of advice I might add to this topic.......


Do not buy in California!!!!

[Valve Bounce]

If there is one more piece of advice I might add to this topic.......


Do not buy in California!!!!

My wife has the same feelings because of the high tax there. But can you please enlarge on your post to give me much, much more details. This is very important for me.

Thanks

[Camelopard]

I wouldn't buy in either California nor Florida, when the quake hits, California is going to disappear and when the sea levels rise, Florida is going to disappear!


Go for somewhere in the middle like Colorado.


:)

[anthonyvop]

I wouldn't buy in either California nor Florida, when the quake hits, California is going to disappear and when the sea levels rise, Florida is going to disappear!


Go for somewhere in the middle like Colorado.


:)

Then why does Al gore have a home in Florida?

[Mark in Oshawa]

Then why does Al gore have a home in Florida?

Right on the coast I bet too...so when the world floods, he will be the first to know?

I haven't seen another true believer Madonna sell her home in South Beach either......

[Camelopard]

Then why does Al gore have a home in Florida?


Maybe you should ask him.

I personally don't know why any one would have a house or want to live in florida, the place is a dump full of bitter and twisted ex cubans who sit around all day and moan about the loss of the good old days when Havana was run by the mafia and cia.

They of course only complain and none of them actually doing anything or have ever done anything about it..............

[Mark in Oshawa]

Maybe you should ask him.

I personally don't know why any one would have a house or want to live in florida, the place is a dump full of bitter and twisted ex cubans who sit around all day and moan about the loss of the good old days when Havana was run by the mafia and cia.

They of course only complain and none of them actually doing anything or have ever done anything about it..............

You are a little harsh on Florida there Camelopard...there is a lot more than bitter twisted Cubans. Then again,I don't get south of I-4 much....

[anthonyvop]

Maybe you should ask him.

I personally don't know why any one would have a house or want to live in florida, the place is a dump full of bitter and twisted ex cubans who sit around all day and moan about the loss of the good old days when Havana was run by the mafia and cia.

They of course only complain and none of them actually doing anything or have ever done anything about it..............

You are a sad, sad person.
Once again you have nothing to add except bitter, jealous insults based on ignorance.

[anthonyvop]

[quote="Mark in Oshawa"]
HAHAHAHAHAHA

That is funny, Everybody knows that there isn't anything north of I-4!

[Jag_Warrior]

Valve, we don't really have any other details. Does your daughter already live here? Does she already have a job here... somewhere in the U.S.? The reason I ask is because I assume she would want to buy a house somewhat close to where she'll be working. I mean, unless she's paying cash, she'll need the job (and a location) before she can get the loan to buy the house.

[Camelopard]

You are a sad, sad person.
Once again you have nothing to add except bitter, jealous insults based on ignorance.



jealous insults vop? pot, kettle, black!

ignorance of what vop?

jealous of the fact that you happily meet with murdering terrorist ar*holes like posada then brag about it? I don't think so vop.

[janvanvurpa]

Maybe you should ask him.

I personally don't know why any one would have a house or want to live in florida, the place is a dump full of bitter and twisted ex cubans who sit around all day and moan about the loss of the good old days when Havana was run by the mafia and cia.

They of course only complain and none of them actually doing anything or have ever done anything about it..............


I'm going to have to taunt you a second time Pffffffffffffffffffft!
There millions of bitter, uneducated, racist white folks there, too and millions of retired people from the "NE Corridor" from Washington DC to Boston MA, and millions of poor blacks and non-Cuban hispanics doing all the service industries.
So it's not full of just embittered "Dead ender" Cubans waiting for the Second Coming, there's plenty of other lost souls there too.

[Roamy]

I'm going to have to taunt you a second time Pffffffffffffffffffft!
There millions of bitter, uneducated, racist white folks there, too and millions of retired people from the "NE Corridor" from Washington DC to Boston MA, and millions of poor blacks and non-Cuban hispanics doing all the service industries.
So it's not full of just embittered "Dead ender" Cubans waiting for the Second Coming, there's plenty of other lost souls there too.

Some people prefer bikinis and beaches some prefer flannel and fags. Hello from Florida Jan :)

[anthonyvop]

I'm going to have to taunt you a second time Pffffffffffffffffffft!
There millions of bitter, uneducated, racist white folks there, too and millions of retired people from the "NE Corridor" from Washington DC to Boston MA, and millions of poor blacks and non-Cuban hispanics doing all the service industries.
So it's not full of just embittered "Dead ender" Cubans waiting for the Second Coming, there's plenty of other lost souls there too.

Wow.

And that was from somebody from the Seattle??? Aside from tossing fish, Starbucks and lousy weather what is Seattle good for?
Really? I spent 3 weeks there one weekend and it was a cultural wasteland. Sure there are things to do if you are a hippie wannabee and your old lady doesn't shave their armpits, like go see the "Vagina Monologues" in Tibetan(I am serious. It was playing there). Or watch 50 year old men with ponytails play hackey Sack in the park.

I enjoy when people bash Florida, especially Miami. Everybody hates it but they all wish they could live here.

[Jag_Warrior]

All this from a real estate question. Geez...

[Valve Bounce]

Valve, we don't really have any other details. Does your daughter already live here? Does she already have a job here... somewhere in the U.S.? The reason I ask is because I assume she would want to buy a house somewhat close to where she'll be working. I mean, unless she's paying cash, she'll need the job (and a location) before she can get the loan to buy the house.

Long story.

But I can see this thread is degenerating into some sort of argy bargy which can be locked if it continues.

[Jag_Warrior]

Long story.

But I can see this thread is degenerating into some sort of argy bargy which can be locked if it continues.

Yeah, I was sort of looking forward to a real estate discussion. This other crap I could have lived without.

[Valve Bounce]

OK! Just supposing I had 80 grand cash, what are my chances of buying something nice in Portland for argument's sake?

[Camelopard]

Well you see I made a joke about California dropping into the ocean and florida disappearing and colorado being in the middle, did you notice the :) ?

It normally means not to be taken seriously, however as usual vop jumps in with his crap and things get ugly!

Anyway I've only been to Portland for a night so I can't comment too much except to say it seemed like a nice city and they have a big blues festival there which can't be a bad thing, imo.

Seattle is one of my favourite places, in particular if you like the outdoors, better still is Vancouver, just don't tell my wife I said that!

Surely buying a house depends on more than buying just because it is cheap? Is it going to be rented or owner occupied? As a previous poster said, more information please.

[janvanvurpa]

OK! Just supposing I had 80 grand cash, what are my chances of buying something nice in Portland for argument's sake?

That would certainly be a good down payment.
Prices in Portland vary drastically by area.
And the whole area has grown quite a lot in the last 25 years so it depends if you want to be close in to the downtown area, in quite trenier neighborhoods, in a California tract housing look-a-like area with malls all around so hard to say. That said:
Full-screen
Portland-Vancouver-Beaverton, OR-WA
Last Updated by NAR on Nov 11
Third Quarter 2009
Median Home Price
$244,500
Yr. Change: -12.2%
All Metropolitan Median Prices.

Median Work Commute: 23 minutes

Full-screen
Seattle-Tacoma-Bellevue, WA
Last Updated by NAR on Nov 11
Third Quarter 2009
Median Home Price
$321,500
Yr. Change: -8.1%
All Metropolitan Median Prices

Median Work Commute: 25 minutes.

Both Seattle and Portland areas are nicely situated for active outdoors activities, both are very progressive politically (by American standards, but by broader measures comparing to anywhere in Western Europe, both are extreme middle of the road verging on a little Right.)in the metro areas, fading to typical bad B movie 24 hour a day All-Rush Limbaugh-all-the-day types as one goes outwards to the fringes of the area and into the mountains and deserts. Portland is closer to the seacost, but Seattle is on Puget Sound...

That could be good or bad depending.
For a motorsport fan there's roadrace venues, Portland International raceway, and whatever they're calling Seattle International Raceway these days) in both, of course theres drag racing, club racing, there's rallies in the nearby 40-100 type distance, desert racing a couple of hours east in Oregon, no more in Washington. Portland beat Seattle on getting things done in the Metropolitan area, but they're much smaller so that helps.

I prefer Seattle, that's why I live here.

But the bigger question than what I think is what does your daughter want to do?

[Valve Bounce]

Let's not lose sight of the OP. I am talking about a foreclosed or repossessed home here.

[Mark in Oshawa]

Let's not lose sight of the OP. I am talking about a foreclosed or repossessed home here.

You would find those in Arizona, Colorado and probably in Vegas.

I would live in Vegas in a heart beat if I could afford to stay out of the casino's!!!!

[Mark in Oshawa]

That would certainly be a good down payment.
Prices in Portland vary drastically by area.
And the whole area has grown quite a lot in the last 25 years so it depends if you want to be close in to the downtown area, in quite trenier neighborhoods, in a California tract housing look-a-like area with malls all around so hard to say. That said:
Full-screen
Portland-Vancouver-Beaverton, OR-WA
Last Updated by NAR on Nov 11
Third Quarter 2009
Median Home Price
$244,500
Yr. Change: -12.2%
All Metropolitan Median Prices.

Median Work Commute: 23 minutes

Full-screen
Seattle-Tacoma-Bellevue, WA
Last Updated by NAR on Nov 11
Third Quarter 2009
Median Home Price
$321,500
Yr. Change: -8.1%
All Metropolitan Median Prices

Median Work Commute: 25 minutes.

Both Seattle and Portland areas are nicely situated for active outdoors activities, both are very progressive politically (by American standards, but by broader measures comparing to anywhere in Western Europe, both are extreme middle of the road verging on a little Right.)in the metro areas, fading to typical bad B movie 24 hour a day All-Rush Limbaugh-all-the-day types as one goes outwards to the fringes of the area and into the mountains and deserts. Portland is closer to the seacost, but Seattle is on Puget Sound...

That could be good or bad depending.
For a motorsport fan there's roadrace venues, Portland International raceway, and whatever they're calling Seattle International Raceway these days) in both, of course theres drag racing, club racing, there's rallies in the nearby 40-100 type distance, desert racing a couple of hours east in Oregon, no more in Washington. Portland beat Seattle on getting things done in the Metropolitan area, but they're much smaller so that helps.

I prefer Seattle, that's why I live here.

But the bigger question than what I think is what does your daughter want to do?

Too much rain for me, but Vancouver BC is the same and twice as expensive.

AS for the politics Jan...I suspect that part of the US is the most liberal outside of NYC, or San Franscisco. That isn't a condemnation of the place either, it is reality. Only in the sticks do the people have a more individual "don't tread on me streak" and I suspect most hinterlands in North America are the same compared to the more libreal cities. That is just Western culture in general.

[Jag_Warrior]

Let's not lose sight of the OP. I am talking about a foreclosed or repossessed home here.

Here's an article from MSN, which is pretty informative:


The current market conditions make it a perfect time for a small investor to purchase one or more foreclosure properties for their private residence, rental or resale. During economic downturns, more upscale homes go into foreclosure, so the notion that foreclosure homes are only available in crime-ridden areas is inaccurate. Beachfront and homes in affluent areas are part of the mix of foreclosed properties available.

But anyone considering buying a foreclosed home should forget about paying pennies on the dollar.

"You can buy foreclosures for as cheap as 30% or 40% below market, but most foreclosures sell for 5% below market," said John T. Reed, editor of Real Estate Investor's Monthly, a newsletter based in Alamo, Calif.

Yet the savings may be twofold if the property is purchased from the lender who holds the mortgage that's in default. That lender may be willing to waive some closing costs, maybe even offer a break on the interest rate or the down payment.

The safest ways to buy foreclosures (http://articles.moneycentral.msn.com/Investing/RealEstate/TheSafestWaysToBuyForeclosures.aspx)

So Valve, while I doubt you'll find much of a house that you could purchase for $80K or less, that $80K might make a 50% or so downpayment on a nice enough place - it just depends on the location and what you find desirable/acceptable. But with at least 50% down, no banker or broker that I know of would completely turn you away (and yes, there are still low doc and no doc loans - they're just harder to find).