Buying a foreclosure

**Preston** · 05-02-2009, 07:16 PM

My wife and I just made an offer to buy our first home. It's a foreclosure and will be having it thoroughly inspected. It's listed at $89900, so I'm figuring the final sale price will be in the mid $80's. Don't worry, we are prepared to walk away if we need to.

Comparable homes in the area are selling for about $110-$120k.

We have about $22000 to work with for downpayment and closing costs.. I was figuring we'd put 20% down, then have the rest for an emergency fund. That way we'd get out of paying PMI.

House payments, including taxes and insurance, will be about $100 less per month than the current apartment we are renting.

Things this particular house will need include a refrigerator, water heater, paint, washer, dryer (although we are able to handwash and line dry, not a big hurry). Locks, new carpet.

Things we'll want to fill the house will include dining room table, dressers, a bed for the guest room.

I also intend on turning most of the backyard into a vegetable garden. I will not get it in this year, but I want some gardening tips for layout.

I'm open to any suggestions anyone has as far as things to anticipate and ways to save money furnishing the house and getting appliances.

Also some suggestions for going from apartment renting to homeownership.

The place is centrally located between several discount stores (including Aldi's), near a bus line, near proposed light rail system, and about the same distance from work as our current jobs.

**ladykemma2** · 05-02-2009, 08:02 PM

lawnmower? garden tools? trash cans?
taxes? insurance?

i put aside 250 a month for repairs and upkeep.

**Preston** · 05-03-2009, 02:22 PM

We've arranged for a lawnmower, already figured taxes and insurance,

My parents moved a couple years ago from a four bedroom house to a condo and have a bunch of garden tools in their garage they aren't using anymore so we will use those. We have a coworker who downsized too and has a bunch of decent furniture in storage.

It is amazing how many people have come forward offeringt to help us out getting this place up to speed. Originally I was a little overwhelmed by the entire experience but now I'm feeling pretty excited about all this.

**Kazoo** · 05-03-2009, 08:46 PM

Congratulations! How exciting.

I would second what's already been said about setting up a fund for maintenance and repairs. That will include, every so many years, a fresh coat of paint, replacing roof and siding, having furnace inspected, etcetera. And all the unexpected things.

When you buy your first house, the temptation is to go hog wild with furnishings and renovations, and to want everything to be new and perfect. But I'd suggest maybe going the Craig's List and Freecycle route as much as possible, just until you are sure you have the basics covered comfortably.

Are you doing a housewarming? If so, you could get the word out about the things you really need, and friends and family will probably help take care of those.

Shop around for insurance, and see what kind of discount you can get by using the same company for both car and home.

Make sure you give proper notice when leaving your apartment and collect any deposits coming back to you. Last time I rented, I was delighted to get all deposits back because I left the place cleaner than it was when I moved in.

If you qualify and you are good about saving and staying on top of bills, think about paying your property taxes and insurance premiums yourselves. All that money you put into escrow with your lender is money that could be earning YOU interest.

Keep us posted!

**Debbie-cat** · 05-03-2009, 08:55 PM

Sounds like a great deal! How exciting for you and your wife! I agree with everything that kazoo has mentioned. Upkeep and insurance are big items. Get everything you can for free or next to free right now and you can gradually upgrade to what you really want. Take it slow but maintenance is one of the most important issues. The house is your investment and like any investment, you have to watch and take care of it.

Good luck and have a blast!

**ladytoysdream** · 05-03-2009, 09:29 PM

Sounds exciting

You can always go to craigslist.com and check the ads there. If you can't find what you are looking for, then put a wanted ad up for what you need.

If you don't have time for a regular garden, maybe you can have a few container plants. Start your research online, and or buy a few garden books. Then you can do some reading when you get a few free minutes.

Don't be in a big hurry to fill up the house. Take your time and buy the best deals you can find. It will fill up faster than you think for.

Good luck

**Michelle68** · 05-03-2009, 09:59 PM

Everyone has given you great advice. Good luck and congrats!

**Denvergirlie** · 05-04-2009, 08:45 AM

Originally Posted by Preston

I also intend on turning most of the backyard into a vegetable garden. I will not get it in this year, but I want some gardening tips for layout.

Watch the patterns this next year. What gets a lot of full sun, what is more in the shade. Is there anyplace in the yard that water pools to more, a damp area. What is the soil like? Is there a prevailing winter wind that you want to block.

Check out the permaculture book "Food not Lawns" well before you plant a single thing.

**itlw8** · 05-04-2009, 11:28 AM

remember you do not have to buy new We started with a washer and dryer we bought for $100 when the washer broke we had the money for a new set so we sold the dryer for $50

tables show up at thrift stores all of the time... If it is a guest room a bed can wait. Just do not have overnight guests or use an air bed when they do come.

**Preston** · 05-05-2009, 11:44 AM

We've already done a lot of things suggested --

We found out a co-worker of ours downsized last year and has a lot of furniture she is looking to get rid of and offered some to us. A lot of the furniture in the house is going to be whatever we can find dirt cheap that is still functional. I am set on worrying about matching decor at a later date -- my first goal is to get the place livable and get a good idea of how much utilities run.

I've already asked my parents for a lot of things to borrow or take that they simply have lying around now.

We're first going to 'remodel' the living room -- by that I mean we'd be fixing a few knicks and dents in the walls and giving a fresh coat of paint.

We have our inspection tomorrow so it's not a done deal yet but things are looking good. I'm pretty apprehensive. I just started packing the apartment today.

**Judi Dial** · 05-05-2009, 12:22 PM

How great for you! Do you have people to help you move? If not, ask folks, rent a Uhaul, pack everything (number the boxes and keep a list, this can help A LOT!)

Also, things to keep in a "we'll use this day 1" bag: paperplates/plastic forks, etc., lightbulbs, trashbags, an extra sheet or two to hang over the bedroom/bathroom windows, nail & hammer, and oh yeah, the one I nearly always forget, TP!

Judi

**calimomx2** · 05-05-2009, 01:50 PM

How exciting for you! Congrats, my fingers are crossed that all goes well for you!!

**Momto2Boyz** · 05-05-2009, 02:52 PM

Congrats! Good luck and I hope it all goes well. We bought a "forclosure home" about 6 years ago (before they were everywhere), the bank had it listed at $119K, and we were able to pick it up in the low $80's! So good luck to you, it was the best purchase we ever made! As it stands right now, all of our neighbors are upside down with the equity in their homes and we have about $70K in equity!

I hope it all goes smoothly for you!

You've gotten lots of advice, but it sounds like you've had lots of offers for things. For things you find out you need once you move, just keep a list and check Craigslist every once in a while. Eventually, you'll find what you are looking for at a good price!