Why would you search for foreclosures?

[KingNothing]

I'm asking this question here because this is probably the smartest community I'm apart of. My sister is 18, pregnant, and looking for a home near us here in minnesota. She's looking for something around $100,000 maximum $110,000. I was searching for real estate searches...and I came across a lot that advertised about searching foreclosures. Now, my normal impression of a foreclosure is an old rickety house that's too crappy for other people to live in. My other impression is someone couldn't afford it. I'm just trying to help out, but can anyone tell me whether searching for foreclosures is a good idea?

Also, if anyone feels really inclined to help, the baby is on its way (in 7th month) so it's kind of a hectic search...We are looking for something in Owatonna, Minnesota, United States. (zip code 55060).

Anyway, does anyone know of some other good ways to search for houses? I can't find anything in the papers or on TV.

 

[Greg Bernhardt]

They are usually good deals. Always look for a good location. The community http://www.foreclosureboard.org is a nice resource.

 

[Moonbear]

Searching for foreclosures can be good or bad. You can get a good house cheap, because sometimes it's a newer house that now the bank owns, and they are willing to sell it just for what is left unpaid of the mortgage to get rid of it, or you can get a piece of crap house that someone has completely neglected while not paying their mortgage. The downside is they are often sold as-is, so if any problems turn up, you have no recourse against the seller (often the bank).

The best way to find a house is to get a real estate agent who really knows the area. Ask around for recommendations. Once you sign up with them, you should be able to get easier access through them to your area's multiple listing service to look up more houses on your own. Usually you don't have to pay anything to your buyer's agent, they take a cut of the commission from the seller's agent, but check into that before you sign any contracts. Real estate agents can also be helpful with a first house, especially, because they can also help walk you through the rest of the purchasing process...what your state laws are, where to find inspectors and mortgage lenders, what time lines to adhere to, what problems the house may have, etc. Again, getting recommendations of agents really helps, because some don't do much of anything other than unlock the front door and stand out of the way while you look at houses. I think those agents are useless.

Good luck for your sister.