mortgage calculators
Question
Are there hidden fees when you buy a Pre-Foreclosed home on default? What's the catch?
I'm looking through Foreclosedhomes.com, and I've found homes that that cost as little as $2,000 dollars. I click on them and it shows a mortgage calculator and even if I put a high interest rate, such as 7%, the payments are always bellow $100 dollars. Is this right? If I choose to get this mortgage and pay for this home, is it legally mine? My mom says I'd have to "pay the default and then pay the estimated value of the house". Can someone please explain to me if paying that much for a house is really possible?
6 months ago - 3 answers
Best Answer
Chosen by Asker
There are real houses in Detroit and Cleveland that are for sale for $2,000. You would have payments of $100 a month. Half of the houses on the block are boarded-up and you could not get a regular mortgage on the house. Most of the other houses on that site have 2 mortgages. The 2nd mortgage is $2,000. You actually buy the house for $2,000. Mom is right that you must pay the 1st mortgage once you get the deed. That could be $200,000 with payments of $1,500. It is a bit scammy for that website to keep advertising houses for $2,000. That is just a gimmick to get people interested.
by Ed Atun
6 months ago
Asker's Rating: 
Other Answers
You are not being given the full picture on most of these sites. The county records are your best source of up to date information. There could be many liens against each property by various people and they would be file at different times. Each defaulted loan is then placed for foreclosure and federal taxes get paid first, then first lien holder, then on and on. Please don't pay for this information when it's free through your county assessor office, or work with a Realtor to show you which ones are available for sale now. Working with a Realtor is free, you get all the experience and knowledge for free, if they have sold these types of homes, they know how to deal with the lenders, etc. Why are you wasting your time on the internet? Isn't your time valuable too?
by Alterfemego- 6 months ago
It's only possible in Detroit, for the most part. Generally speaking, you aren't going to get a home for $2,000. It just doesn't happen. When lenders foreclose on a property and take back ownership. they sell for as high a price as possible. I'm not sure what you are seeing on this website, but don't count on it being valid.
by acermill- 6 months ago