Back on Aug 1st 2022, our house was destroyed by a landslide while my husband, me, and our 3 Grandkids were in it. The case has been settled. I want to buy a house. I've thought about going through the bank, but I've also thought about going through an auction. This is all new to me, I know the real-estate market isn't great at this moment. Any advice would be very helpful.
Advice about ways to buy a house.
|December 4, 2023 1:02 PM
Not sure I’m following. You don’t go through a bank to buy a house, you go through a real estate agent. Unless you mean you don’t want to take out a mortgage and want to pay for the house in cash at closing. You can buy at auction but not with a real estate agent and I don’t think you can have an inspection done when buying at auction. Not sure if you need 100% cash at auction or if financing options are available.
|December 3, 2023 4:16 AM
So many questions.
Did you get a cash settlement and have money in hand?
Where are you living now and where are you looking to purchase property?
If you have grandkids I presume you’re a senior citizen.
|December 3, 2023 4:31 AM
Sorry for your loss.
Feel free to buy ours so that we may retire. 2br 2ba with deck and spectacular view on a huge lot with garden spaces and a hot tub on a hillside in a great neighborhood in San Francisco on a greenbelt. Solid bedrock. No danger of landslides and we never feel earthquakes under 5.5. Absolutely fabulous neighbors and no homeless people in a 3-mile radius. No garage and just 37 steps from the street, but did I tell you about our new water heater?! Hottest showers you'll ever have. Listed at just $1.5.
|December 3, 2023 4:33 AM
How did you acquire the house that was destroyed by the meteorite... I mean the tsunami... er the buffalo stampede...?
|December 3, 2023 4:39 AM
I have no advice. I bought my home in 1978, lakefront, ranch, lakefront for 28k. I can't help it if I'm lucky.
|December 3, 2023 4:49 AM
Did I say lakefront? Sorry for being repetitive. The wine is good.
|December 3, 2023 4:51 AM
We do have cash in hand as of now. I do know buying a house at auction vs the bank are completely different. I was told HUD and some banks keep lists of foreclosures and I was wondering if anybody on here could give me some advice, about either process.
|December 3, 2023 1:37 PM
R4, we were renting at the time.
|December 3, 2023 1:40 PM
R2, yes we have cash in hand now. We did get a settlement. Right now we're living in an upstairs apt, that the landlord of the other house owns. My husband is older and the stairs are hard on him and this bldg is filthy and in a bad area. I'm thankful we have a place to live, but I want our own home. I've got about $35.000 to work with do you think that would work to buy a small 3 bd house?
|December 3, 2023 1:46 PM
Where are you buying this house? In 1974?
|December 3, 2023 1:54 PM
No,lol. So you're saying that $35.00 won't be enough? I was so afraid of that. There is more money coming this week, so can add to it. We live in so wv.
|December 3, 2023 1:57 PM
You might find a HUD foreclosure for $35K. No one will finance it. It will be:
In a depreciating area (else the owner would have sold it rather than let it go to foreclosure) Smell like cat pee. Have no warranty. Need more than cosmetic work. Probably will be 2 BR 1 bath.
Just saw your update that you are in WVa. Well, maybe.
|December 3, 2023 1:58 PM
I know if we buy a house at auction, we'd be buying as is, and there could be major problems.
|December 3, 2023 1:59 PM
R12, yes everything you said is true. One house up for auction had a cracked foundation and needed a roof. Same thing about a depreciating area. Yes Southern WV. Is right now a bad time to buy a house? Should I wait? I'm kind of afraid, because I want to move on from this, but it isn't looking good.
|December 3, 2023 2:04 PM
|December 3, 2023 2:06 PM
You don't have enough money to see anything through yet. Start scrolling through Zillow and Trulia and realtor.com and see what your market is like. You might consider a condo, they're always cheaper than a house. Talk to an agent about rent to buy too. But don't spend your wad yet.
|December 3, 2023 2:06 PM
I have looked through both of those r16. The properties listed are overly priced and and not what I'm looking for. There isn't much to pick from as well. No I've got the money put away and it won't be touched. I don't have an agent yet, but will find one this week. I actually have thought about rent to own or a condo. A condo would be something I'd be interested in. There isn't much available around here right now. Thanks for answering me.
|December 3, 2023 2:14 PM
I wish you much luck, OP, but since you are asking for advice...
Your questions show that you have little idea how the process of buying a house works, whether through a real estate agent, a direct purchase from the seller, or at auction. My advice is to learn the details if how each process works -- regarding offers, contracts, inspections, bids, and particularly how you will pay for the house and on what schedule. Buying at auction you will have to demonstrate credit worthiness, pay a fixed amount ir % on the day if sale and you will generally have 10- or 30-days to settle the full amount with the auctioneer. If you fail to come up with the full amount, you will lose the full deposit amount.
Buying at auction is for people who know what they are doing and who have large amounts of cash in hand or ready access to loans or mortgages through established contacts and excellent credit.
Buying a house directly from a seller with no real estate agent is likewise something best left to people well acquainted with buying and selling real estate (unless it's your ancient mother selling you the family house.)
Of course the first step is to know what amount if money you can afford to spend. It sounds like that's unclear to you.
You might also look at what houses cost - not at auction but in the big property search portals. Maybe $35,000 buys something where you live, but you might want to know what that is before you register for an auction bidding paddle.
|December 3, 2023 2:18 PM
So your Rental House you were living in was destroyed by a landslide while you were in it. What lawsuit did you file then?
|December 3, 2023 2:23 PM
Ok R18. Thank you. I didn't realize that I'd show credit worthiness to buy a house at auction when I have the money. There are 2 more checks coming this week.
|December 3, 2023 2:24 PM
R19, we sued the land company.
|December 3, 2023 2:25 PM
You need to meet agents and bankers in the area, because you have enough for them to help you with your credit score. Take a year if you can to browse properties and interview profesionals. Your current landlord might be helpful too, if he's not an asshole. Buying a house is a talking game. Build your liquidity, your credit score and your connections. Also make counter offers if you want something overpriced. They want a buyer bad enough they'll listen.
|December 3, 2023 2:30 PM
The Landlord I have now has offered us another place to live. It's a double wide trailer that's fairly new with a large yard , new appliances, 4 bedrooms 2 full br's. He also wants to know how much our settlement was, and I don't want to disclose that.
|December 3, 2023 2:32 PM
There are 3 bedroom homes listed on realtor.com in WV for 35k and less.
Just guessing, but even if these homes are technically listed, there may not be agents willing to walk potential buyers through them or through the buying process. Maybe for foreclosures the banks pay someone a flat fee to open them up, but OP isn’t going to find an agent who will pick them up at 9 am on a Saturday in a Mercedes with a few bottled waters and spend the day conducting a tour through $35k homes. That’s why OP is asking about banks and HUD.
But OP, look at the listings online to try to get an idea of what $35k might buy you. Keep in mind that no single listing is necessarily reliable. An unrealistic seller may be pricing crazy high, a low priced home may have a huge defect not obvious to you. Some closed sales you can view online may have been between family members. But at least you will get a general sense of what makes a home cost more or less (location, parking, condition, square footage, etc.) in your area.
Also, this is not the best forum for advice on this. I’ve seen really shitty advice given here regarding $1 million one bedroom coops in Manhattan and posters here are going to know a LOT less about WV.
If you are paying cash, I can’t see how you credit would matter, but maybe there are some programs that have special requirements to ensure the homes are kept up and remain on tax rolls after the sale?
|December 3, 2023 2:38 PM
god, you people are so easily duped.
|December 3, 2023 2:39 PM
It might be fake because it’s odd that OP would choose to post on this site, but the story is completely plausible.
|December 3, 2023 2:41 PM
R26, I'm not a fake. I come Here all the time. I just thought it wouldn't hurt to ask for advice. I'm not easily duped , either.
|December 3, 2023 2:43 PM
R 24 , thank you. I'll keep every thing you said in mind.
|December 3, 2023 2:44 PM
[quote]I've got about $35.000 to work with
Have you considered living in a van?
|December 3, 2023 2:44 PM
Thanks for answering everybody. I really appreciate it.
|December 3, 2023 2:51 PM
Get to know the online listings, narrow down the locations you will consider (if you haven’t already), and then go from there.
|December 3, 2023 2:55 PM
If your partner is older, then you probably want a ranch/rambler, which will limit your options, esp. in a region without a lot of semi-recent construction. Also you need a renovation budget. A bank will make renovation part of the mortgage, although I would imagine that would affect rathes.
|December 3, 2023 2:55 PM
OP, here should be some home-buying classes that you could take through a community organization.
I echo the upthread suggestion of getting a condo: more affordable plus far less maintenance, which can mean fewer unexpected major expenses and less work keeping up the land and tasks like shoveling, especially if residents hire it out.
Glad you survived the landslide.
|December 3, 2023 2:59 PM
[quote] I didn't realize that I'd show credit worthiness to buy a house at auction when I have the money.
OP/R20: To clarify what I wrote earlier: Some auctions require some evidence of good faith to be eligible to bid. That can be in the form of previous experience buying from the auctioneer, creditworthiness, or a letter from your saying saying that "X is a customer in good standing who has a current cash balance in excess of the published estimated sale price of the property at 123 Springfield Lane which you are offering at auction on 12.12.2023, [or $35,000+, or some general $ figure to reassure the auctioneers that you are a serious bidder.] Not every auction requires this. Almost every auction requires a certified check for $X amount on the day of sale and the balance within a short time frame (e.g., 10 days, 30 days); some auctioneers require you to state how and when you will settle the account the full -- you tell them you have cash, or a bank loan, or some other source and offer them reassurance that you can settle in full within the timeframe for payment; and sometimes they may ask for a bank letter or some other evidence.
If you're paying with cash, the auctioneer won't care about your creditworthiness in the broad sense (nor any standard credit rating.)
I wouldn't go shopping until you had all your checks in hand and available to withdraw from your bank. But if you'll be buying with cash, no one cares about your credit score or where you money comes from.
|December 3, 2023 3:05 PM
I appreciate everybody and the advice. I've never had any money in my life, and I want a home more than anything. I'll keep everything you all said on my mind.
|December 3, 2023 3:09 PM
|December 3, 2023 3:20 PM
Ok R34. You clarified the questions that I had. Thank very much.
|December 3, 2023 3:23 PM
35K will maybe buy you a fixer upper in a place like Johnstown, PA.
|December 3, 2023 3:34 PM
I have some experience with court-foreclosed auctions. If you're not experienced and have no one to help you, I would not participate in an auction.
|December 3, 2023 7:20 PM
Why R39? There is an auction coming up tomorrow. Because it was in yhe newspaper I thought maybe it was an option. I haven't committed to anything, though.
|December 4, 2023 12:26 AM
I'm not R39, but will offer some reasons (which I fully expect you will ignore):
Buying foreclosed houses at auction is for people who know something about what they are doing. It doesn't seem that you are among this group.
You don't even have all of the payments from your settlement in the bank, yet you are in a huge hurry to spend the money without an inkling of the process or the subsequent expenses.
I wouldn't wager that tomorrow's auction of foreclosed properties will be the last such in your area or in West Virginia.
Take some time to inform yourself about the property market and the business of buying foreclosed properties and the substantial risks and investment required far beyond the auction hammer price.
|December 4, 2023 12:40 AM
I'm not in a hurry to spend money R41. I thank you, for your advise, too. I've just never been in this position before, and just needed some feedback. Someone in my family bought an house through an auction, but I wasn't sure about doing that. I hate all of this, and haven't spent anything. I don't have the whole settlement yet, but soon will. So fucked up. Thank you for the article. Getting familiar with buying a house is confusing, and that's why I asked for advice.
|December 4, 2023 12:48 AM
R34. Thank you.
|December 4, 2023 1:14 AM
Thanks R41, I understand now. There's a whole story behind it, but I get now why the relative I have who bought an house through an auction did so because he knew the history and people who owned the home.
|December 4, 2023 1:16 AM
[quote] Why [R39]? There is an auction coming up tomorrow. Because it was in yhe newspaper I thought maybe it was an option. I haven't committed to anything, though.
Agree with R41. Adding:
Auctioned houses are sold "as is." You need to do some research on the house. Do you even know what to research about the house?
Is there a renter in there? If so, you might have to honor the lease for a while. You might also have to evict, which is long and stressful.
Are you financially ready to pay? You might be able to afford the down payment that is required at the auction, but you will have to pay the entire price. Is your credit in order? Do you have tax liens, etc., that might cause a problem with a mortgage loan?
|December 4, 2023 2:06 AM
35,000? Oh honey I've seen electric bicycles that cost 15K.
|December 4, 2023 2:12 AM
No, I wouldn't want to evict anyone, and I don't have a specific property in mind. I knew there would be much more to buying an auctioned house and wouldn't be cut and dry. The person I know who did buy a house at auction, belonged to his mother and he bought it after she died. So he knew the history and in fact had built the house for her. I know, you'd buy the house as is and wouldn't be able to inspect it. Anything could be wrong. I do know someone who is a property owner who will look at any property I want to buy before hand. I wouldn't want to have to deal with liens or evictions or anything like that.
|December 4, 2023 2:16 AM
I know it's not much R46. I do know that. In the area I live in I'm trying to make it work.
|December 4, 2023 2:18 AM
I suppose right now is not a good time to try and buy a house. I have a lot to research and I've been trying to avoid it. I've been looking forward to buying a Roomba, lol. We need everything and have been in limbo since that happened. Now Winter is here and I really hate where we're living.
|December 4, 2023 2:25 AM
Do you intend to stay in southern WV? Maybe move a bit north to the Charleston area? Or Morgantown?
|December 4, 2023 2:28 AM
Yes, I'd like to move closer to Charleston. Morgantown is too far away, as I have family who depend on me.
|December 4, 2023 2:36 AM
I've looked on Zillow at properties closer to Charleston, but I'm afraid most of them are out of our price range. I don't know, though because I haven't pre approved for anything. I'm waiting until all checks are in hand, which will be very soon.
|December 4, 2023 2:39 AM
To answer your question R50, yes I'd move more North, closer to Charleston.
|December 4, 2023 2:42 AM
If there is an auction advertised near you, even if you are not interested in buying it ( just be sure it is in the price range you are wanting), take the opportunity to research the process - that is, find out what can be checked about the property before the event, inspect it with your knowledgeable friend if possible ( he can point out things to check in another property in the future), attend the auction and watch how things are done. Once you have even a little bit of experience with the process, things might become easier for you. Also check with your personal contacts about the reliability and honesty of the auctioneer; some use “shills” or “phantom bids” to up the price. Also, find out about yearly expenses such as taxes, insurance , utilities ( if possible), any zoning or legal issues with the property, etc. Do not try waiting until prices ( or mortgage rates decrease) - they might not in your lifetime. Good luck. It is a very comforting feeling to know you have a secure place to live.
|December 4, 2023 2:47 AM
Kansas Boy, thank you. A secure place to live has never meant more to me than the last year and a half. The one big question I've had is should I wait until mortgage rates come down. I will talk to my friend more in depth.
|December 4, 2023 3:09 AM
OP, I wonder if there are programs at the county or state level that offer homeowners grants or rebates if they are buying a home? Similar to what was done in Detroit when they wanted to encourage people to move into neighborhoods where a lot of people had moved out.....
You may want to look at local banks or any kind of county or state programs.....some of them will have free classes for home buyers and if you complete it, it may help reduce your rate for the loan, or they'll give you a $500 credit towards closing costs, etc.
|December 4, 2023 3:23 AM
Speaking of taxes, your state probably has an online real property tax website. You can plug in the property address and see the history of tax payments. You can see what the property is assessed at. You can see what additions were made to the property, square footage, how many bedrooms, how many bathrooms.
You can also do a title search to see if there are any creditors, people who have a claim to the property.
|December 4, 2023 3:24 AM
Was it a landslide or a mudslide? Was it because of an abandoned mine?
|December 4, 2023 3:48 AM
Thank you R 56 & 57.
|December 4, 2023 3:48 AM
Well, I'm learning a lot. Thanks everyone.
|December 4, 2023 3:55 AM
[quote]The one big question I've had is should I wait until mortgage rates come down. I will talk to my friend more in depth.
If you buy at auction you will have to pay the total price in cash within a short time frame. You can't work a mortgage into the deal (except by way of an FHA mortgage with its special rules or possibly after the fact of you owning it outright, but that would involve additional costs of property valuation, inspections, loan costs, etc.)
At one point, I thought you said you want to purchase a house outright with cash. If that's the case and you want to pay in cash, why would mortgage rates matter to you?
If you expect to secure a mortgage for the house, it's all the more reason to avoid foreclosure auctions. It's possible if you are an experienced buyer with excellent credit, otherwise it's a headache and a there is a ticking clock to have the purchase completed in a very short period of time.
If you intend to have a mortgage, better to get pre-approved and then take your time looking for a house - and looking at the houses (inside and out, with a contractor or friend knowledgeable about construction and repair costs.) Buying a house without the benefit of seeing the interior or having an inspection from a professional seems foolhardy unless you happen to be acquainted with a particular property. Buying random houses this way is a risky business.
If the security of ownership is a key consideration, it seems much better to buy what you can afford in cash, without the burden of 20 or 30 years of mortgage payments. That leaves you with only property taxes, utilities, and certain repairs as an ongoing and small burden, a nice bit of security against fluctuations in income and unforseen events.
|December 4, 2023 1:02 PM