From CNN:For Victor Guevares, winning a bid at a raucous foreclosure auction two months ago was just the first step toward achieving his dream of home ownership. And after getting through several obstacles along the way, he finally moved his family into the two-story, three-bedroom house in Queens.
The auction process isn't as easy as it looks, Guevares said.
"If you're going to an auction, do your research," he told CNN.
CNN first met the Guevares family in March when he grabbed a home once worth $527,000 for less than half that price.
Guevares had won an auction at USHomeAuction.com's foreclosure sale in New York. Banks and other lenders were unloading foreclosed houses, and many were selling at 50 percent to 60 percent below their highest values.
5 comments:
"CNN first met the Guevares family in March when he grabbed a home once worth $527,000 for less than half that price."
Congratulations, good to see someone other than speculator-shits cashing in. That house was probably never -really- worth anywhere near $527,000 it was just some R.E. poof's gushing inflation.
Speaking of which, Thursday night ABC Nightline had a sickening piece about large investment cos. and well heeled individuals focusing on the Phoenix foreclosure market and pricing-out average people. The result will probably be more individuals pressed to the max and struggling to make the payments.
Since speculators were in-part responsible for the current mess, they should be banned from foreclosure auctions. I'm sure they'll find some other way of scamming people.
The foreclosure route is very tough and best suited to professional investors.
After winning a coop on the steps of the Bronx Courthouse last February, I went through a grueling 6 months of work before being told there was a lien on it that could not be removed the night before the scheduled closing.
Obtaining mortgages is also very difficult. I was initially approved by Citibank for a special mortgage that had a HUD subsidy that would have paid for closing costs and a discounted mortgage rate.
I paid for an engineer to inspect the unit, which I had planned to repair in the first place, and was denied a mortgage because it needed repairs.
I was told to repair it first and then they would give me the mortgage. That's correct, repair it before I buy it!
I tried to get another mortgage not subject to these restrictions from the same bank and went through weeks of delay and re-submission of paperwork because they did not want to lend due to the earlier turndown based on conditions that only apply to that special reduced-cost loans.
They tried to apply this clause to my normal mortgage that was more expensive!
This little adventure cost me 6 months of my time and $3,000 or so in fees that I will never recoup. This, in spite of the fact that I had access to advice from a mortgage investor friend of my brother's and specialized lawyers.
If professional investors were banned, every one of those properties would rot.
Kiddies, do not try this at home.
"After winning a coop on the steps of the Bronx Courthouse last February"
Oh my, I did -exactly- the same thing in 1997; Bronx Courthouse mezzanine. There was no-one but the bank rep and of course the lawyers. The 1 br was located on the Concourse in a post war building and I had seen it prior to bidding.
The previous occupant had vandalized it (typical Bronx)broken walls, ripped out outlets paint on everything.
Bottom line though was a large 1 bdrm for $7400 in a doorman bldg. I bought it w/out loan and repaired it my self with a Mexican friend who later bought it from me.
A number of people in the restaurant business have told me of houses they bought at tax auctions upstate.
Key points: Inspect the unit, Do not buy occupied properties. Have lawyer do a lien check.
Its not beyond anyone's ability do this stuff.
These illegels should be forced back where they came from!
Anonymous said...
These illegels should be forced back where they came from!
WHAT THE????
Context? Anything?
Post a Comment