Desoto Foreclosures
Desoto County, MS Foreclosure sales?
Has anyone ever bought a home at a county foreclosure sale? The kind where you bid at the court house? I am interested in doing this and need a bit of information. How much of a discount can you get at these? Are you required to pay as soon as you win? Are you allowed time to get a mortgage?
I bought one that way in California about 10 years ago.
You may or may not get a deal. Many times they are in great need of repairs or updating. Check out the home first.
The Bank wants to get their money back and usually will not go under the money they need back. But once in awhile you find a steal.
You either need aproval papers for the loan amount by your Mortage company. Find out the value of the property and be approved for at least that much. Pre-approval papers.
Some require full cash at auction close. You have to literally show up with a suitcase full of money. That is what we did.
We said we would go as high as $200,000. and that is what we carried with us. Risky but many require cash on hand.
So check it out.
Generally, you will get the home for the loan amount. so the former buyers lost their down payment and any equity. So you need to find out what they paid. If they bought it in the last few years, under five, they won’t have much equity in it. And in the last few years with all the creative financing, they may not have had to come up with much down to get in.
This is bad for you.
You want the most equity and most down.
Example:
They bought home for $250,000, came up with $45,000 down and they have been paying payments which $1,000 was applied to the principle for ten years. That equals the $45,000 down and the $120,000 equity.
This home will sell cheap by the Bank as they have most of their money. Bank like to unload as they are not into property management.
If the same home was $250,000 and the down was $15,000 and they only paid one year at $1,000 toward principal that would be $27,000. The bank must get at least, $223,000 back.
You see how this works. The best deal is when the Particular Bank or Company has way too many foreclosures then they are willing to dump some and lose money. But it is hard to know when this is the case. Check them out well first.
DESOTO Foreclosures, HUD Owned Home for Sale – 1228 DEVONSHIRE DR, 75115
