All Forum Posts by: Joshua D.

Nope. Entire security deposit and first months rent plus any fees up front. No exceptions. Red flag. Don't do it. 

With that language being in our sales agreement, wouldn't it assume that we'd be fine to move forward, being that they said they'd give us special warranty deed clear and insurable title?

Hey Michael! 

Thank you. There was a prior mortgage lien on the property for $97,000. However, the sales agreement states that they will deliver to us a special warranty deed clear of all liens and encumbrances, with good and marketable title, insurable by any responsible title insurance company at regular rates. I did ask about the mortgage and they said they will make sure to satisfy of record the mortgage prior to closing. 

It appeased me, and I checked for water, sewage and trash liens and there was one on the water for $200. No judgments that would follow the property, that I could see. 

Hey guys!

So here's the deal. I noticed a house recently in a good area that was vacant and had been so for quite some time. I found out the owner was some kind of bank/government financing agency, and that the house was a REO. Supposedly, it went into foreclosure, then went through a sheriff's sale, and now is being sold by this agency. I reached out them (took me a week of phone calls to find the right person!) and finally got ahold of the right one. We scheduled a visit to the house, and decided we wanted to put an offer in on it. We went in with an all cash offer of $35,200 and, to our delight, the offer was accepted.

It is a 3bed/2.5 bath with a partially finished basement. Probably would sell for around $120,000 if flipped right. This property is in a B area, around $1,200/month including a few utilities. It sold in 2007 for $99,000. In 2004, for $38,000.   It needs some work but it's mostly cosmetic, figuring on the high end around $15,000 in work, max. 

I have never purchased a REO property before this. It states that the agency purchased the home for $984, how is this possible? Can someone shed some light on REO properties and how this could be? Seems to be a slam dunk, hoping I'm not missing some vital piece of info here.

The mortgage was never satisfied but are attorney was saying possinly they might wipe that clean. I guess will find out this week when paperwork comes in not sure first time with something like this.

It's owned by an out of area housing agency.

Thank you for the reply

So we just purchased a house and we were talking to neighbors around the neighborhood. We heard about a house 2 houses down has been sitting vacant for 3 years. Bought for $99,000 in 2007 and we had a hard time tracking the owner down but finally found that a agency owns it. They were asking $50,000 for it we did a inspection and obviously needs some work and the neighborhood is good we made a offer for $35,200 cash no contingencies and are attorney closing costs. they   accepted just never been through a sale like this. They said they are now sending us all the agreement forms in the mail and such. They said they were also trying to get rid of there inventory it was all winterized when we were there for the inspection nothing serious just a walk through with my handyman. Can someone maybe tell me more about what I'm dealing with? I believe it went through a sheriff sale and a foreclosure sale and didn't sale but I'm not exactly sure.

@johnthedford what is HML? What are the benefits of that? I'd love to learn more.

That's a good point,  I agree.