Has anyone purchased a foreclosure?

How long between offer and closing? How much below list price were you able to purchase the property? What type of repairs did you have to make? Any other issues come up with the home that were not revealed during the inspection? Ultimately, do you think it was worth it?

Thanks so much!

Re: Has anyone purchased a foreclosure?

By foreclosures, I assume you mean bank-owned properties that have already been foreclosed upon. Those properties are usually in poor condition -- the foreclosure process takes a look time, and by the time the bank takes possession of them, they have often deteroriated because they've been vacant so long and/or have been vandalized/stripped. And the banks are selling the properties "as is."

In most instances, you cannot get a regular mortgage... most foreclosures require a cash buyer or someone who wll get a 203(k) rehab loan (an FHA loan product that allows you to roll the costs of any repairs and renovations into your mortgage). But with the full 203(k) loan -- there's a streamlined version for repairs up to $35K -- there is quite a lot entailed (an FHA planner has to look at the property, you have to get estimates from a licensed contractor, etc.).

For this reason, most REO/foreclosures are bought by builders or investors, not the average homeowner looking for a primary residence.