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Mehpic
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8,162 Posts
Discussion Starter · #1 ·
with all of the recent family changes, there is a thought in the back of my mind that we're going to have to move. the best part is that due to our house's location and the upgrades we've completed, it's still worth a good amount ($650k). A move would actually allow us to upgrade to a newer house that would be larger, and we would be able to own outright or have a small mortgage ($100k or way less, if'n we use some of the $ to pay off all debt).

i've limited MLS searches to 3 br, 2 bath @ 500k minimum, and most are going for about $450k at 1500-1600 sq ft range for something built less than 15 years ago, which is definitely an upgrade from our 1300 sq ft house built in the early 80s. we do still owe about $200k on our mortgage.

a "down" would be property taxes- as we bought the house out of the family trust and dad's still on the houe in name, we're paying early 80s property tax (like $1500 a year). if we sold and bought new, our property taxes would go up to $5-6k.

so, the questions:
anyone bought a foreclosure? they seem stupid cheap.
are we dumb to do this right now? the financials seem solid to me.
what am I missing here?

please edumicate me. my mom was teh mortgage broker/money guru, but we don't have her to ask anymore.


//another downer: i just planted tomatos, peppers and basil. dammit.
 

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Just Plain Bitter
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8,602 Posts
I don't think it is a bad idea in your position. as long as you can go through this and not increase the amount of debt you have. In today's economy increasing your debt would be a bad idea. As long as you can get house for well below what you can get for your house I don't see a problem.

The current foreclosure market where I live is kind of strange. By the time you find out about one they are usually gone. Best way I have found to find foreclosures is to go to the Bankruptcy court in your area and look at Trust deed sales. The notices are usually in a notebook in the waiting area and open to public view. these are usually listed well in advance of the actual sale as the banks has to file this in advance of the actual foreclosure.
 

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Captain Obvious
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11,876 Posts
i drove past a realtor yesterday. their sign said to come there to buy bank owned property. if you can get a home inspector to look at it, i'd give it a serious consideration. some seem to be really beaten down.

i think you have the upper hand since you are trying to downsize.
 

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Mehpic
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8,162 Posts
Discussion Starter · #4 ·
tomk96 said:
i drove past a realtor yesterday. their sign said to come there to buy bank owned property. if you can get a home inspector to look at it, i'd give it a serious consideration. some seem to be really beaten down.

i think you have the upper hand since you are trying to downsize.
the strange part is that "downgrading" financially to a more affordable mortgage gets us an upgrade in size and "newness" of a house.

I work in the eviction law industry right now- we see pictures all the time of properties that were vacated in a hurry- it's damn scary. beaten is a nice way of putting it.
 

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Registered
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800 Posts
If you are going to buy a foreclosure I would make extra sure the house is sound and that there are no issues whatsoever with it. I am pretty sure the banks sell as-is where-is I-don't-care-what-happens-to-you-after-we-close-is.
 

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Mehpic
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8,162 Posts
Discussion Starter · #6 ·
rward325 said:
I don't think it is a bad idea in your position. as long as you can go through this and not increase the amount of debt you have. In today's economy increasing your debt would be a bad idea. As long as you can get house for well below what you can get for your house I don't see a problem.

The current foreclosure market where I live is kind of strange. By the time you find out about one they are usually gone. Best way I have found to find foreclosures is to go to the Bankruptcy court in your area and look at Trust deed sales. The notices are usually in a notebook in the waiting area and open to public view. these are usually listed well in advance of the actual sale as the banks has to file this in advance of the actual foreclosure.
finding a new place through a realitor isn't the hard part- i think selling the existing house would be.
 

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Quiet, daddy's drinking
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5,887 Posts
Now's a good time to buy, what with the super low mortgage rates. Of course you have to be able to sell the existing home first.:cool:

Housing prices from other parts of the country always amaze me. A 1600 sq ft., 3 bedroom ranch is worth $650,000? Damn.

/My 1650 sq.ft. 3 bedroom here in Iowa is worth $130,000 max.:rolleyes:
 

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Mehpic
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8,162 Posts
Discussion Starter · #8 ·
Turtleherder said:
Now's a good time to buy, what with the super low mortgage rates. Of course you have to be able to sell the existing home first.:cool:

Housing prices from other parts of the country always amaze me. A 1600 sq ft., 3 bedroom ranch is worth $650,000? Damn.

/My 1650 sq.ft. 3 bedroom here in Iowa is worth $130,000 max.:rolleyes:

welcome to southern california.
 

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Failboat Captian
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6,527 Posts
As long as you aren't in a positiojn where you may lose your income and have a bigger mortgage, I'd say go for it. definitely!

But make sure you get a good home inspection (and be there with the inspector) and make sure the title gets thoroughly researched to ensure there are no leins, etc on the house that you may get hooked with.

It's a great time to buy a house (or car, or other big $$ item). I agree, it's all about getting out from your existing one. Assume you'll get a lot less than you think it's worth. Look at comps in the last 60 days and think 10% below that. Don't fool yourself. I don't know your neighborhood, but I can't think of anywhere that you can sell a 1300 sq ft mid 80s house for $650. Even in SF you probably can't get that.
 

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Mehpic
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Discussion Starter · #10 ·
JohnnyTooBad said:
As long as you aren't in a positiojn where you may lose your income and have a bigger mortgage, I'd say go for it. definitely!

But make sure you get a good home inspection (and be there with the inspector) and make sure the title gets thoroughly researched to ensure there are no leins, etc on the house that you may get hooked with.

It's a great time to buy a house (or car, or other big $$ item). I agree, it's all about getting out from your existing one. Assume you'll get a lot less than you think it's worth. Look at comps in the last 60 days and think 10% below that. Don't fool yourself. I don't know your neighborhood, but I can't think of anywhere that you can sell a 1300 sq ft mid 80s house for $650. Even in SF you probably can't get that.

i'm nost sure if the local realitors are blowing smoke up our a$$es with their glossy door flyers, but apparently stuff in our area is still moving.

as of this morning, I'm in touch with a realitor friend of my mom's. hopefully the agent will set me straight about the realities of the market and our area.
 

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It's not TOO Cold!
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2,498 Posts
Unless you a) can't afford your current mortgage, or 2) will be in a better location with respect to work, life, etc, why go throught the hassle of selling and moving now?

I know 2) is always easy to justify, but selling isn't going to be easy, especially with a little 1 running around. there are some pretty significant cost in volvled with selling and of course moving. If the cost and hasssle of selling/moving is significantly outweight by moving, then go for it. If it would be nice, I would say stay put, put the effort into improving your current house and worry about other things.
 
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