Foreclosure property Purchase.
Hello Friends..
I am looking to buy a foreclosure property which has the following characteristics in chattanooga, TN. I am trying to understand my risks before I get involved.
This property was in abandoned state for over six months. The city tried to contact the home owner and was not successful. Hence the city decided to go ahead with demolition and put a lien on the property. While this was happening, the bank proceeded with foreclosure on the property. The bank requested a stay on the property for the demolition. And the bank had 6 weeks time to dispose the property. They have already burnt 2 weeks from that.
Here are the numbers
- Sqft of the house: 1165
- Asking price of the House: 75,000
- City's estimate to bring up the house to code: 45,000
- City's lien on demolition:15000
- Average market rate in this area: 130/sqft.
I am thinking of putting a cash offer at 60,000[ 25,000 savings and rest may be hard money or personal loan] closing 10 to 15 days. Please advice on this deal. Can somebody advice me the steps to move forward and get additional time to fix up the property. What would be my legal risks. What is the reserves I need on this property.
I am buying this property as for my personal residence.
Thanking you in advance.