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Doods, should I buy a foreclosure property.
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Date: June 15th, 2010 7:00 PM Author: narrow-minded blood rage theater recently laid-off biglaw associate, about 40k in the bank. can get nice 1 bedroom foreclosed condos for about 30k in my city. if i buy, parents will throw in 20k to help.
question: is it best to just rent, given that i'll still have to pay prop tax and community fees on the condos or should i go ahead and buy while it's affordable? |
Date: June 15th, 2010 7:01 PM Author: cerebral stag film french chef Sounds like a disaster waiting to happen unless you know what you are getting into with a foreclosure. (http://www.autoadmit.com/thread.php?thread_id=1339635&forum_id=2#15255470) |
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Date: June 15th, 2010 7:02 PM Author: narrow-minded blood rage theater why? (http://www.autoadmit.com/thread.php?thread_id=1339635&forum_id=2#15255477) |
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Date: June 15th, 2010 7:10 PM Author: black judgmental milk The previous owners will fuck up the condo out of spite. (http://www.autoadmit.com/thread.php?thread_id=1339635&forum_id=2#15255539) |
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Date: June 15th, 2010 7:17 PM Author: Cordovan Passionate Point not if they're already out and no damage has been done (http://www.autoadmit.com/thread.php?thread_id=1339635&forum_id=2#15255575) |
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Date: June 15th, 2010 7:02 PM Author: Underhanded crackhouse what do comparables rent for? (http://www.autoadmit.com/thread.php?thread_id=1339635&forum_id=2#15255480) |
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Date: June 15th, 2010 7:04 PM Author: narrow-minded blood rage theater 700-1000, depending on location. (http://www.autoadmit.com/thread.php?thread_id=1339635&forum_id=2#15255497) |
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Date: June 15th, 2010 7:04 PM Author: rose misanthropic antidepressant drug Yeah man the first thing I like to do when I get laid off is to buy a house! (http://www.autoadmit.com/thread.php?thread_id=1339635&forum_id=2#15255496) |
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Date: June 15th, 2010 7:05 PM Author: narrow-minded blood rage theater well i can either own a place for 2 yrs worth of rent, or i can just gift 30,000 to a landlord. (http://www.autoadmit.com/thread.php?thread_id=1339635&forum_id=2#15255507) |
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Date: June 15th, 2010 7:08 PM Author: rose misanthropic antidepressant drug That's a ridiculous rent-to-own ratio, so ridiculous that something is clearly out of whack (the places you're looking at aren't comparable at all). You're suggesting it's like 24 months of rent to buy a place, where normally the ratio is at least 150 and gets to above 250 in bubbly CA markets. (http://www.autoadmit.com/thread.php?thread_id=1339635&forum_id=2#15255526) |
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Date: June 15th, 2010 7:15 PM Author: Flesh Skinny Woman yeah it must be in basically beyond repair condition if what he says is true (http://www.autoadmit.com/thread.php?thread_id=1339635&forum_id=2#15255565) |
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Date: June 15th, 2010 7:20 PM Author: narrow-minded blood rage theater foreclosure property in an oversaturated condo market. (http://www.autoadmit.com/thread.php?thread_id=1339635&forum_id=2#15255592) |
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Date: June 15th, 2010 7:28 PM Author: Big-titted mother tyft (http://www.autoadmit.com/thread.php?thread_id=1339635&forum_id=2#15255639) |
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Date: June 15th, 2010 7:13 PM Author: Underhanded crackhouse For 40k who gives a fuck? I'd buy just to ensure that I didn't have to explain on apartment apps that I was unemployed.
But it is probably going to be really difficult to sell that condo to anyone in the near future. Any building with condos selling for 40k is likely in financial ruin, not to mention occupied by less than 75% of owners, etc. Even though you don't need a mortgage, I doubt a bank would underwrite one for the next slob who wants to buy your shitbox of a condo. |
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Date: June 15th, 2010 7:22 PM Author: narrow-minded blood rage theater not necessarily, right?
presumably one person's individual financial ruin doesn't mean the complex is full of similarly situated people. |
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Date: June 15th, 2010 7:34 PM Author: Underhanded crackhouse Condos (especially new construction) are different. I've never seen new condos for 40k. The cheapest I've seen (outside of major cities) were around $100-120k in 2003-2005. Let's say it's one of them. To finish construction, most of the building would have to be sold (it's usually a term of the developer's financing docs for construction costs). Even with units sold at pre-construction rates, these first buyers probably paid 85-90k. If units in their building are selling for 30-50% less than that now, they are probably terribly underwater on their mortgages. So even though they might not be in personal financial ruin, why would they bother to continue paying their mortgages? The drop in credit rating isn't that big an issue for them because they don't even necessarily need a loan to get a new place. (Per your OP, even unemployed jerkoffs have enough in their money market accounts to buy condos in cash in that area.)
This is made even worse in the condo situation because these people probably stop paying their HOA fees too. So everyone else's fees go up to cover the difference. There are examples of buildings in the west (I believe Washington) where the HOA has actually decided to walk away from the entire condo building because so many individual unit owners walked away from their mortgages.
All I'm saying is do a ton of research. |
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Date: June 15th, 2010 7:42 PM Author: narrow-minded blood rage theater i'm not talking about developer owned ones, but about bank owned short sales. (http://www.autoadmit.com/thread.php?thread_id=1339635&forum_id=2#15255731) |
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Date: June 15th, 2010 7:15 PM Author: Well-lubricated apoplectic toilet seat yarmulke lol, wut. (http://www.autoadmit.com/thread.php?thread_id=1339635&forum_id=2#15255568) |
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Date: June 15th, 2010 7:16 PM Author: Multi-colored fuchsia site useless brakes (http://www.autoadmit.com/thread.php?thread_id=1339635&forum_id=2#15255570) |
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Date: June 15th, 2010 7:29 PM Author: Big-titted mother more like Naples or some other SoFl backwater. (http://www.autoadmit.com/thread.php?thread_id=1339635&forum_id=2#15255645) |
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Date: June 15th, 2010 7:43 PM Author: narrow-minded blood rage theater small southern college town. (http://www.autoadmit.com/thread.php?thread_id=1339635&forum_id=2#15255737) |
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Date: June 15th, 2010 7:39 PM Author: narrow-minded blood rage theater south (http://www.autoadmit.com/thread.php?thread_id=1339635&forum_id=2#15255706) |
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Date: June 15th, 2010 7:31 PM Author: cerebral stag film french chef wrong thread (http://www.autoadmit.com/thread.php?thread_id=1339635&forum_id=2#15255655) |
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Date: June 15th, 2010 7:44 PM Author: Fighting Bbw Liquid Oxygen Hi, Ruskiebitch! (http://www.autoadmit.com/thread.php?thread_id=1339635&forum_id=2#15255744) |