I am sure you have heard the radio, television, and internet ads stating you can buy a foreclosed home for as little as $199. Not $199 down, just a total of $199 and you own the home. I actually received an email yesterday from a lead source asking to find such homes for them. In the words of Flavor Flav of Public Ememy, Don’t Believe the Hype…
I am sorry, but I am going to be blunt here. Are you nuts?? Do you think that if there were such a creature, that the bank, the attorneys, and/or myself would not jump to buy a home for $199? Heck, I could board it up and make more money than $199.
However, I have had buyers buy a home for as little as $199 DOWN, and even less using the USDA loan program. Completely different story but we will stay on topic.
Although there are great deals out there for purchasing a home, you will not be able to buy one that cheap. These scam artists are using the old “bait and switch” tactic to get you. Typically, this is an illegal gambit, however, they just say, “The one we had at that price just sold, so do you want to sign up for our alerts so you do not miss the next one?”
Of course, their “alerts” are only $19.95 per month. Not only that, but 85% of the homes listed on their alerts are not available for purchase, or they do not provide free and clear title. Please, do not join these lists, especially if they charge you!
If you are serious about purchasing a home, and want to get a deep discount, you want to look for Bank Owned Properties otherwise known as REO’s. Unlike a short sale, these properties have gone through the foreclosure process, the bank has cleared the title, and they want them off of their books. However, the bank has done their homework and will not yet just give them away.
They want a large initial escrow deposit, financing secured and/or cash, a quick settlement, and an as-is sale. Most of the inventory needs some type of updating or work to be done to the property. If you do not have the cash to buy and fix up, this is where the 203k mortgage program works its magic!
Although it is not likely that you will find something for .50 cents on the dollar, you can find a fantastic bargain as well as realize instant equity in the property. If you would like to get a FREE (my favorite 4 letter “F” word) list of bank owned homes, just email me at Michael@MichaelsHomeInfo.com