How would you feel about buying a house that had been forclosed on?

It definately seems to be a buyer's market right now, and The Warden is scouting out houses as we speak for a move to Middle Tennessee. Of course this is all because of the sub-prime loan suckers loosing their shorts, but how would you feel profiting from their failure? If you saw your dream house for sale at a great price because the previous owners had been, or were going to be kicked to the curb, how hard would it be for you to buy it?

Well, if the could not make the payments then they were in over their head. I have bought repoed cars before.

I'd have no problem at all buying a foreclosure. Whoever owned that house previously made a commitment to pay their mortgage lender in accord with the mortgage agreement and could not follow through. Since it was foreclosed upon, the previous owner probably did not have the reserves to sell it before losing it. Tough break, but if you don't pay for it, you can't keep it.

I don't see why you should feel bad... The banks were the ones who lent money to people who could not afford it. They knew what they were doing.

True, but loosing one's car isn't near the same as loosing one's home...especially since they lost it because they were preyed upon by shithead predatory lenders.

I'm not saying that it wasn't their own damn fault...it was...but it still gives me an icky feeling.

If you don't go for it you are stupid.

Yeah it sucks they are losing the home but:

#1 It's their fault.
#2 Buying it from them will save them if it is bought before foreclosure. They can pay off the house, get out of a crappy loan, and try to salvage their credit. After foreclosure would be a disaster for them.
#3 It's their fault.
#4 You can't let it get to you. If you don't buy the house and instead bought another house that house you just bought may have been a foreclosure that was bought by someone and now sold to you. Their are too many forclosures to avoid unless you are really really picky.
#5 Did I mention it was their fault?

But had the lenders not been such shitheads, the previous owner wouldn't even have gotten the chance to own the house.

Lenders have been too loose--not too tight!--with the money. This gave opportunities to a lot of people who wouldn't otherwise have had it. And maybe to some who shouldn't have.

Not your problem, really. Since the previous owner didn't pay, the bank is the rightful owner.

I read a book on the property market a while ago, and the author had an interesting take on it. IIRC, it went something like this:

The people you're buying from want (or have) to sell. Their circumstances are such that this is their best option. By buying from them, you enable them to move towards their goal, whatever that is. If they don't manage to sell, they're even more fucked.

Even after forecolousre, it's a good thing and I'll tell you why. Cause I been there.

When you have a house forecloused on, you are still oblidged for the loan to the extent that the lender does not recoup his loss.

What often happens though, is that they can sell the property for a figure close enough to what you owed that they decide to write off the difference rather than persue you for it.

So when you buy a forecloused property, you often are helping the unfortunate debtor to reduce or eliminate a big credit problem.

Foreclosed property might make me uneasy, but I'd be more concerned with buying property that was seized by the government. Now, maybe I'd be buying a house that someone's grandfather built with his bare hands and grnadma got kciked out of when she couldn't pay the property taxes. But then again, maybe I'd be buying Juan the Drug Dealer's house and when he gets out he'll need the duffel bag of cash he buried int he back yard.

Even better question...why would you want to move here?

Oh right. You're in Memphis. Carry on then.

My aunt got a $300,000 house for about $180,000 during a foreclosure auction.

It's a nice house.

Not buying it won't put the family back in it.

Your decision doesn't make much of an effect...

I wouldn't purchase a home just yet.

The market is frankly in the shitter. Prices have nowhere to go but down and I would say buying now would be like catching a falling knife.

Late next year/early 2009 is when you'll have cleared out all the suckers by then.

It's not like you not buying it is going to make the bank go "Gee. We are so mean. Give the house back to the Shmos. We don't need the money that bad. Roses and sunshine for all!!"

Buy what you like and can afford and that's that. The foreclosure already happened...it isn't because of you. And like Shep said...not buying it will make things worse for the debtor in the long run.

As tenants (for the moment) of a house about to be in foreclosure as we speak, my family and I would agree. Get the house. You will get a good deal, and the people who need to get out from under the lender will appreciate at least that.

-J.

Lots of very good points in this thread, but I have to admit, I couldn't do it...
Totally irrational, but I'd think the house would be unhappy.

Which is just one of the many reasons I'll never be a rich property developer...

Um...tough shit?

If people can't make payments, they lose the house. It's nothing personal, it's just business.

The old house my uncle rented to my mom for eight years before he sold it to get more money to impress his then girlfriend (now wife :rolleyes ) seems like it's gotten into foreclosure the last time we drove past it. The grass in the front lawn is so long, our beagle would get lost among it. Even the live Christmas tree my aunt planted there close to fifteen years ago has died (It was over ten feet tall, too! ). Considering all the work that needs to be done on just the outside, I'll bet the seller's having a hard time getting rid of that house.

Not seeing a problem

Dear righties, the world is not as simple as your daddy told you. Sincerly yours, the sane side of life.

So who's fault is it that the buyer didn't pay the bills on time? More importantly, regardless of whose fault it is, what would you suggest be done with home buyers that can't keep up payments? Just let the bank take a loss on the house so Ma and Pa can keep it? Let the government step in and bail the buyer out? What would you do?

The daughter of a woman that I worked with, bought a FHA home through an auction and got a great deal. It was a foreclosure. They had to do some remodeling, but even after that, it was still a good deal.

It's not like you are swooping in and kicking the family out into the dirt.

Now if someone had been murdered there, I wouldn't buy it.

The Warden checked one out that looked good on Realtor.com. It's on almost 3 acres, built in 1900, hardwood floors everywhere, new roof, but apparently it's in need of lots of fixer upping, which isn't necessarily a bad thing. The only real down side is that the stairways are extremely steep and narrow. This could be a problem for TW because of her MS.

The best part is that it already has an old slave house on the property, so I won't have to build one for Tamar, Mrs. A, and Mrs. Flow.

Ain't your fault somebody didn't pay their bills.

If anything, I'd be worried about neglect and maintenance issues due to their cash shortfall.

Who cares if you get a good deal on a foreclosure?

OMG. Why the hell can't I neg her?!?!?!?!?!?!?

That's creepy.

Can I have a murder house instead?

I think I read someplace that the Amityville home is up for sale. Apparently it comes with a complementary red-eyed pet pig that smells like rotting flesh!!!!

I heard it got re-zoned commercial though, since all the owners have been using the story to make money off of it.

Yeah, those rotten feds won't even let us profit off the stupidity of others anymore. What is the world coming to???