Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
This house was a foreclosure in a nice neighborhood. It's been on sale since July and had dropped in price twice from about $380k. Thought is was a good price at $350. Any thoughts on reasons why it won't sell? Thanks.
Has the house already been foreclosed on (foreclosure sale already taken place on the steps of the local courthouse) and repurchased by the lender, or bought by a speculator, who is now listing it with a real estate broker?
Or is this a listing that is currently IN foreclosure, meaning that it still belongs to the owners (mortgage holder) and they are trying to sell it before the foreclosure sale actually takes place on the steps of the courthouse? In other words a lis pendens has been filed but the sale has not taken place.
Two entirely different scenarios. If the foreclosure has already happened, it's just like any other house sale except that the seller (lender) will probably insist on selling it As Is, take it or leave it, what you see is what you get.
There could also be problems, or potential problems, with the title. Not unusual to see in foreclosure situations.
Foreclosures can be very tricky. My ex-husband was a lawyer who specialized in those (that's all he did) and I worked in his office for several months each year. All sorts of delays can come up in a house that's IN foreclosure. For one thing the mortgage holder's lawyer will try every delaying tactic in the book, including filing for multiple stays and finally bankruptcy. Many buyers won't want to be hung up for that long, which can take months. Sometimes many months. He was considered a fast foreclosure attorney because often he could get them done in only 6 months. But there were plenty that got dragged out for a year or more. Meanwhile the mortgage holder is living there rent free.
Let's put it this way: WE never bought a foreclosure for ourselves, LOL. Way too much of a PITA/quagmire and that was the view of someone who did foreclosures for a living.
This house was a foreclosure in a nice neighborhood. It's been on sale since July and had dropped in price twice from about $380k. Thought is was a good price at $350. Any thoughts on reasons why it won't sell? Thanks.
First rule of thumb, it’s ONLY worth what someone is willing to pay for it. 30k price drop, NOT worth it. MAYBE they will get a bid now with the drop.
Sure, you may save money. However, as it gets colder & colder, those frozen pipes will be a nightmare!
Could take up to two years to close: title search, liens, (multiple) bank approvals, the list goes on.
Not worth the aggravation.
Agreed. Short sales, REOs (foreclosures that have been taken back by the bank at the foreclosure sale), and houses actively in foreclosure are only for masochists, LOL. Or people with a lot of available cash, time, and low-cost renovation resources at hand.
If the house is in a normal state (i.e., not a board-up, in which case the heating and plumbing lines should have been drained and winterized) as a REO, then it's in the hands of some local management company who has listed it with a realtor. That company is contractually obligated to protect the bank's investment by making sure things like freeze-ups don't happen. Ideally they should be sending someone in periodically to check to make sure there's been no vandalism, making sure the grass gets cut during the growing season, etc etc.
Another thing about buying a REO is that the bank/owner typically wants a larger down payment from a prospective buyer. The discrepancy is a bit less nowadays (since the 2008/9 debacle) but they are likely to still want more than for a 'normal' purchase.
Another possible issue is that the house may have had an FHA or Fannie Mae/Freddie Mac mortgage and those guys are a royal pain in the patootie to deal with even under normal buying circumstances. The hoops they make people jump through are ridiculous. The only worse scenario when trying to buy a REO is when the owner is the government, LOL
OP, do you happen to have a link to the listing? Just curious.
If you have a link to the listing, or an address, I could probably give you some better insight.
I tried to both the link above. It's on MLSLI.com in Brightwaters on Rutland Ave. If you serach value bet. 300k-400k only a few houses come up so you will see it. Thanks a lot.
ETA: The listing does not mention how much the Village of Brightwaters taxes are. Those come due in June, I believe. I don't think they are much in Brightwaters compared to some other Incorporated Villages but I know they exist because a friend of ours once lived in Brightwaters and it was a separate additional tax bill from the normal December one that everyone gets.
Has the house already been foreclosed on (foreclosure sale already taken place on the steps of the local courthouse) and repurchased by the lender, or bought by a speculator, who is now listing it with a real estate broker?
Or is this a listing that is currently IN foreclosure, meaning that it still belongs to the owners (mortgage holder) and they are trying to sell it before the foreclosure sale actually takes place on the steps of the courthouse? In other words a lis pendens has been filed but the sale has not taken place.
Two entirely different scenarios. If the foreclosure has already happened, it's just like any other house sale except that the seller (lender) will probably insist on selling it As Is, take it or leave it, what you see is what you get.
There could also be problems, or potential problems, with the title. Not unusual to see in foreclosure situations.
Foreclosures can be very tricky. My ex-husband was a lawyer who specialized in those (that's all he did) and I worked in his office for several months each year. All sorts of delays can come up in a house that's IN foreclosure. For one thing the mortgage holder's lawyer will try every delaying tactic in the book, including filing for multiple stays and finally bankruptcy. Many buyers won't want to be hung up for that long, which can take months. Sometimes many months. He was considered a fast foreclosure attorney because often he could get them done in only 6 months. But there were plenty that got dragged out for a year or more. Meanwhile the mortgage holder is living there rent free.
Let's put it this way: WE never bought a foreclosure for ourselves, LOL. Way too much of a PITA/quagmire and that was the view of someone who did foreclosures for a living.
We had to go through evictions proceedings for almost a year before getting them out .... then they left all knds of stuff behind they did not want ..but under law I had to store them for 6 months in storage. Then we had to pay to scrap them .
Then , we can’t prove it was the owners but the house was vandalized and all pipes and wires ripped out.. it was a tax lien foreclosure we were awarded .
Some more insight: Similar small houses in that section between Sunrise and Montauk Highways do go for only in the 300s so given the Richland one's condition IMHO it is still overpriced at $332K. The basement is probably a horror show. House probably needs all new heating equipment etc. The roof looks like it's shot. Basically it's a strip-gut-and-remodel and as such most won't want it until it's closer to $300K. Or less.
Also it's in the Bay Shore school district. Some sections of "West Bay Shore" which is just west of Brightwaters are in the more desirable West Islip school district but Brightwaters per se is not. So as a starter fixer-upper house for a young couple with more time than money it's not that attractive a prospect, and for a speculator/flipper the price is still too high to expect a decent profit.
The bank is probably in it for $300K plus legal expenses and so I bet it sits there for a good year if not more until the price hits around $300K. Then some spec will buy it, do some cheap quick cosmetics, and turn it into a rental property.
Then , we can’t prove it was the owners but the house was vandalized and all pipes and wires ripped out...
Typical for many foreclosures. They sell the copper pipes, wiring, etc. Were the bathroom fixtures (sinks, toilets, faucets) gone too? Basically anything metal or ceramic is fair game. Sometimes the owners themselves do it, other times they leave and rent the house to someone for cash and before those 'tenants' skedaddle they do the ripping out as a bonus for themselves. They don't care, and the owners don't either because they feel they've been "victims" of the big mean old bank (or tax man) and see it as payback.
Not uncommon to see a board-up broken into (they pry the plywood off the back window) when 'pickers' go in to see if anything was left behind. Then it quickly becomes known as a squatting place if none of the neighbors report it. In the winter fires get set, etc.
Foreclosures are a nasty business, glad I no longer have anything to do with it, even second/third-hand.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
