Buying a foreclosure

**kita** · 09-22-2010, 05:16 PM

This is mostly fantasy but...
If I bought a foreclosed house what are some of the issues I might expect?
The two houses I have seen that I might consider have tenants or owners in them. Both houses are from the fifties so I think while structural issues are possible it is fairly unlikely.
The house I am most interested in is listed as being worth about $150,000. The last owner was in construction and I don't know if I should be happy about it. Sometimes the shoemaker's children go bare, KWIM? They have small children (based on the toys in the backyard).
I'm thinking first anger issues. That might mean spraypainted walls and carpets. I can paint and find room rugs etc. My brother and I can hang drywall if there are huge holes in the walls.
My bigger concerns would be plumbing and electrical. I really don't see anyone going so far as to rip out wiring but I suppose it is possible. Plumbing issues concern me if there is copper pipe in it because people have been known to take it out and sell it.
The outside looks good. Doesn't need painting and from what I can tell the roof is okay.
In this area, I am thinking about mold. Is there anyway of checking for that online in public records?
And while I am on public records, are blue prints public records? It is a four bedroom house with only 1089 sq feet. While that is doable with small bedrooms, I think the layout would be important.
What else should I think about? How long after the auction would I be able to take possession of it? Auction is January. I feel for the little kids but they have enough notice to move, I think.
Am I forgetting something?

**Russ** · 09-22-2010, 07:39 PM

yes you are....

Think mean, think bitter, think the worst you can.

I've heard of people taking a few drawers out of the cupboards, taking the plugs and cutting the wires short.

Not spray painting the rugs, but taking sections.

Check the plumbing. Imagine something large be flushed.

just a few things off the top of my head.

**Greebo** · 09-22-2010, 08:00 PM

Foreclosures can be nice and neat or totally trashed. You can't tell from the outside - you have to look to be sure.

**craftypam** · 09-22-2010, 08:05 PM

What about the idiot banks that turn off the power and there is no sump pump so the mold begins

**prudent lass** · 09-22-2010, 09:02 PM

My friend and her husband just bought a foreclosed house this summer. I went over on the first day to help paint. Or so I thought. We didn't even get close to painting. We were too busy fixing the plumbing, ripping out the urine-stained carpets, and filling in holes in the drywall. The water had been turned off for ages, so the toilets were caked in black stuff. One of the saddest things we found was that they had kept dogs in the basement and the poor things had eaten half the door off.

Every square inch of that house was filthy and clearly resulted from years of neglect. The good news was that for all it's disgustingness, the damage is pretty much cosmetic and the house looked 100x better by the end of the week.

In this area, I am thinking about mold. Is there anyway of checking for that online in public records?
And while I am on public records, are blue prints public records?

My friends got their house inspected before they made the purchase, but they didn't buy at auction. I'm assuming this isn't an option? If it wasn't, I'd be really uncomfortable buying. I'm up in Canada, so the laws may be different, but I know that vendors do not have to disclose asbestos even in regular sales. I'm not sure about mold. Vendors do definitely have to disclose if the house has ever been used as a meth lab b/c of health and insurance issues. This is something I'd want to discuss with someone in real estate or even a lawyer who specializes in real estate. (I spoke with a real estate lawyer when I was looking for houses and got great free advice.)

**prudent lass** · 09-22-2010, 09:04 PM

Originally Posted by prudent lass

My friend and her husband just bought a foreclosed house this summer. I went over on the first day to help paint. Or so I thought. We didn't even get close to painting. We were too busy fixing the plumbing, ripping out the urine-stained carpets, and filling in holes in the drywall. The water had been turned off for ages, so the toilets were caked in black stuff. One of the saddest things we found was that they had kept dogs in the basement and the poor things had eaten half the door off.

Every square inch of that house was filthy and clearly resulted from years of neglect. The good news was that for all it's disgustingness, the damage is pretty much cosmetic and the house looked 100x better by the end of the week.

My friends got their house inspected before they made the purchase, but they didn't buy at auction. I'm assuming this isn't an option? If it wasn't, I'd be really uncomfortable buying. I'm up in Canada, so the laws may be different, but I know that vendors do not have to disclose asbestos even in regular sales. I'm not sure about mold. Vendors do definitely have to disclose if the house has ever been used as a meth lab b/c of health and insurance issues. This is something I'd want to discuss with someone in real estate or even a lawyer who specializes in real estate. (I spoke with a real estate lawyer when I was looking for houses and got great free advice.)

ETA: And even having a home inspector sign off on it wouldn't be enough for me. I'd want to make sure I could sue him/her if something was missed. I don't even know if they'd offer that kind of assurance though.

**kita** · 09-22-2010, 09:34 PM

Yes, I believe that there are inspectors who will give garauntees for an extra fee. But I imagine that they could also refuse. "This house has so many issues that while I can name most of them, I am not comfortable saying this is it."
What I also don't know for sure is if the people living there now are the owners or renters paying money to the bank. I suppose it isn't ethical to look at their mail either

Although my next trip down I might look to see if there is a mailbox with a name on it. Not an absolute but might be an indication.

**Greebo** · 09-22-2010, 09:47 PM

Home inspectors carry no liability for their reports. They tell you what *they* find wrong with the place. They don't guarantee that their list is complete, and you can only maybe go after them for the very obvious things if they don't catch them.

**kita** · 09-22-2010, 09:47 PM

Originally Posted by Russ

yes you are....

Think mean, think bitter, think the worst you can.

I've heard of people taking a few drawers out of the cupboards, taking the plugs and cutting the wires short.

Drawers I can deal with. My brother and some friends would love to earn some extra money making drawers. I would probably paint all to match. Or with some searching I can replacements. Cutting wires short is more of an issue. I never thought of that. The owner is in construction. I think that would either be a positive or negative.

Not spray painting the rugs, but taking sections.Replacing rugs or going down to hardwood is also something I can do.

Check the plumbing. Imagine something large be flushed. This would be more subtle than the copper pipes. And possibly more poetic depending on what was flushed. Plumbers can be spendy I hear...

just a few things off the top of my head.

Since I would be buying to live in the house (and it would be my first house) I can be flexible about rugs/floors and cupboards.
Since the house was last sold in 2007, hopefully there isn't any structural damage. It has someone there so I am guessing that AT THIS MOMENT is isn't bad. My concern is what would happen between auction date and when they would have to move.

**frugalfranny** · 09-23-2010, 02:04 AM

Good luck........hope you find lots of info about it on here.

One of the things here is taking anything that they can get recycle $ for.........think copper, metals, etc.

Even our contractors are losing wiring on-site! It is crazy!

**McD** · 09-23-2010, 09:12 AM

If there is no heat and the house hasn't been winterized (meaning meter removed, etc), the pipes can freeze and bust, along with the water meter.

If there is an outstanding utility bill on the property, or a lein on the property, that can hold up closing as well.

**LuLuBleen** · 09-23-2010, 01:52 PM

Well, that's it. I'm delurking for this one.

If I bought a foreclosed house what are some of the issues I might expect?

Some friends of ours bought a foreclosure through an agent in late 2008. The house was built in 2007 and had been sitting empty for a year. No malicious damage.

However, in the past two years they've had problem after problem. Although the house had been inspected, our friends keep saying that the inspector "must have been on some serious drugs" to have missed so many important things. They've spent thousands of dollars on repairs (water heater, fireplace, heating vents, plumbing, etc.).

If I were going to buy a foreclosure, I'd get at least two professional inspections. I'd insist that my husband follow the inspector step-by-step on each one (we did this with our current home).

Lastly, please check the plumbing for flushed cement. That was a favorite tactic here in California for awhile.

Good luck to you if you do decide to go for it.

**frugalfranny** · 09-23-2010, 02:30 PM

Originally Posted by LuLuBleen

Lastly, please check the plumbing for flushed cement. That was a favorite tactic here in California for awhile.

Good luck to you if you do decide to go for it.

OMG!!! All these horror stories have scared me with the idea. Had been 'lightly' thinking about it.....but wasn't sure where I wanted to go. That is really scary. Still getting my mind around the idea that cement would 'set up' in a pipe, but guess it would if no water/etc was going through the pipes.........

**BeccaJoy1014** · 09-25-2010, 10:32 PM

I dont know where you live, but here in florida the process is:
you find a house you want to bid on, show up at the foreclosure sale at the clerks office and if you have the winning bid put 5% cash down immediatly after the sale and have until later that day to deposit the rest of your bid. you need to do your own research with the property appraisers,tax office, and official records to make sure there are no other leins or second mortgages againsty the property because you'd be responsible for those too once you buy the property.
for us, the actual certificate of title doesnt get issued into your name until 10 days after the sale, not until you have that paper in your hand do the right to go onto the property as far as I know... but check with your clerks office to see what their procedure is and how far along in the process the foreclosure cases are..

if its a short sale (before the foreclosure gets to the point where its sold at auction) then that would be a totally different situation...