[cute fuzzy bunny]

Sidebar discussion to this...are foreclosure homes really worth the trouble?

I have a friend of a friend thats trying to buy a home and is focused on foreclosures simply because he doesnt have enough money to buy a home in the area he's looking in. Seems he's always being outbid and the winning bid always seems a bit expensive for the property in question.

I talked with a couple of agents about it, and their take is that the best deal is to get the property before it forecloses, from the distressed seller. If the seller is willing and the bank is reasonable.

Otherwise, they said that banks these days are bundling their foreclosures up into lots of around 5 homes and selling them to other banks willing to take on the risk.

Their take was that very little of value was making it to the 'foreclosure homes' sales, and that those ended up selling within a few percent of their normal retail value, plus they were often beat up well past what a regular home was.

But thats just the northern cal area...I suppose things might be pretty different in other parts.

I guess in a roundabout way to answer your question Ed, it seems there isnt much money to be made in buying or selling a foreclosed home, but there might be some money to be made in selling information about foreclosures, which many seem to think are bargain buys for the bold home buyer. Seems to not be the case, at least according to the folks I've talked to and what i'm seeing with my friends friend.