buying a house

[isso No.439564]

I keep seeing houses online that are being advertised for sale at like, under 10k, I want one, but don't want to come off like a fool. What do I need to do? Move first style.
>pic very related

[Anonymous No.439565]

>>439564
You probably need to hire a demolition crew to take it down so you can build a new house on the land.

[isso No.439572]

>>439565
that sir, is not helpful, I need advice in the first move to buying a house, I do not have established credit, I do have a savings account, and I could come up with a down payment of about 2500 dollars. If anyone knows anything.

[isso No.439573]

dumping stuff

[isso No.439575]

?

[isso No.439577]

!

[Anonymous No.439578]

What part of the country are we talking here? If its a failing city, like Detroit, yeah, you can get houses for that much but you probably don't want them at any price. If its another part of the country its probably a scam. Where are you seeming them listed? Are they really sales or are they auctions? Short sales? Foreclosures? Tax repossession?

If its not in some hell hole and they aren't some funky sale the next question you have to ask is whats wrong with them? Used as a meth lab? Termites? Wood rot? Massive back taxes bill? Needs major repairs/upgrades? For example, in my area, they just ran new sewer lines in a section of town (septic before that) a few years ago and made a requirement that any homes sold there had to be connected to the line as a condition of sale. It costs a fair amount of money and it will rip up their yards so the prices have come down appropriately for the homes that haven't made the upgrade. Its a welcome upgrade too, cause every time we get heavy rains these peoples poorly maintained septic systems back up and the whole area turns into a shit pond but some assholes are still too cheap to fix it.

Really though your best advice would be to talk to a local realtor that you can trust. Talk to people you know that have bough homes in the area and see who they trust. Check out the BBB and see who has a good rep. Yelp, Angie's List, that kind of shit. Its their job to know these kind of things and they will have a lot better idea of what isn;t going to pass the smell test then you will.

[isso No.439580]

>>439578
outskirts of a city in Indiana, most in the price I'm talking about are listed as "fixer uppers" which is ideal for me, basic carpentry is not an issue, but if there is of course huge holes in the roof and mold/asbestos then of course I would pass. Should I go to a realtor before I discuss getting a loan from the bank?

[isso No.439581]

#

[isso No.439583]

@

[isso No.439586]

homepath(.)com/listing?listingid=37772322

[Anonymous No.439588]

>>439580
>Indiana
As long as it's not Attica or Gary you're okay. You really wanna look at the neighborhoods they're in. They could be going for that price because they used to be meth houses, or are in shitty neighborhoods. I'm sure I don't have to tell you that meth is a very big drug in our state. In our town there's been meth houses found in even nicer neighborhoods. Look up news reports and see if there's any mention of crime in that neighborhood, drugs, robberies, assaults, busts etc.

Just sayin', but you might wanna have an inspector look at whatever you choose very closely.

[Anonymous No.439589]

>>439580

Yeah, get pre-aproval for a loan before you even start looking. Once you have the loan pre-aproved you be able to have a sold hold on what you can afford. No point in looking at a place and wasting tons of time only to find out you can't get a loan that will pay for it, right?

[Anonymous No.439590]

>>439586

Its a 124 year old home in a historic neighborhood thats being sold "as-is", has no pictures of the interior, limited listing information (IE no heating/cooling listed) and is selling for about a 5th of what other homes in the neighborhood are. Oh and its been listed on the market for about 6 months and as had over a 3rd of its original sale price shaved off in that time.

A home less then a block away on the same street recently sold for over $70k and there are several homes in the area selling for $30k+, yet this one is going for $9k. I'm not saying that it might not be a deal, but it undoubtedly has major issues and I would do some serious inspecting before buying this place. Just cause it has holes in the walls doesn't mean thats the only problem. The foundation might be short or the wiring/plumbing condemned.

[fllaw No.439596]

i dont have a lot of research in evaluating a home's electrical/plumbing/structural issues, so im going to provide some advice from my area of specialty, real estate law.

1) check property records for lots of info such as plats, surveys, and sale history. you can tell a lot from this. research the current owner and previous owners. for example; if you see it purchased in 2000 for $50,000, then transferred by warranty deed in 2010 to bank of america trust co etc. for $100, then to indiana real estate pros llc for $5,000 in 2012, and theyre the current owner, you know a lot. in that case, you know that someone bought it before the bubble, couldnt pay the mortgage, the bank took it back at the foreclosure sale, tried to sell it and couldnt, and eventually cut their losses and sold it to an investor.

2) search public records (clerk of court or comptroller will have them, likely online) for other info. liens, mortgages, deeds, etc. everything is recorded there. sometimes you can search by address, but often only by party. so, start typing in every previous owner of the address as the grantor and then as the grantee and pull up everything. its a lot of info to sort through, but this is what title companies do.

3) which brings me to 3, pay a title company about $100 if you're really interested to do a title search.. this will reveal liens (such as contractor or tax liens) that run with the land - ie, are connected to the property and which you will inherit. make sure the mortgage was properly satisfied and any liens released.

4) get a home inspection. get everything in writing. you may need appraisals for work to be done to make it liveable. get everything in writing. dont release anyone from liability for failure to find a defect. in other words, you want to be able to hold anyone who says "there are no termites" liable for the damage if there ARE termites.


um is the pic of the actual house or a house LIKE it?

[Anonymous No.439604]

>>439564

its easy. you have to live in a place where there are no people, jobs, city services, no cops, and lots of crime and neglect. eg. Detroit after the collapse of industry.

thats how yo uhave a $10K house in the US.

[Anonymous No.440584]

>>439564
Good luck with your project, OP!
Would you have a job in the area? It's almost universal that the cheapest houses are a long way from any decent job market. Then you have to consider the mileage on your car and hours you spend commuting.

$2500 is not enough and lack of a credit history is worse yet. I bought one house before the sub-prime clusterfuck a few years ago and another after it. They have tightened up the lending standards very much over those five years.

10% down is the minimum if you have good credit, which is cheap on a $10,000 house, but, closing costs are $2000+ no matter what the price. For example, the bank will want to send an inspector to look at it and that's $500ish no matter what kind of house it is.

You may also need to pay the current year's property tax and a year's worth of insurance all up front. I think I paid $7500 on top of the down payment for these costs to get the house I have now. It was $110,000, so some costs like insurance may be more, but a lot of the closing costs (like the inspection) are fixed.

I hope you're using MLS to look at details about these houses so you know what the taxes will be and special assessments.

Anyways, good luck and keep this thread up! Getting your own place is one of the happier parts of life.

[Anonymous No.440590]

>>439596
This is all good info if one was to pay cash for a house, but OP stated that he would be getting a mortgage. The bank would do all of this checking before they ever allowed you to buy.

It's good that you point this out anyway. I had two different friends (I know this is a crazy coincidence, but hear me out) who both bought a house from their mother on a contract-for-deed basis. Both of their mothers were scumbags who neglected to mention that there were liens on the house exceeding the value of the house. Both guys ended up just walking away from the place and all the money they put into it.

We were all young and stupid at the time, but this kind of information would have been valuable, fllaw!

[fllaw No.440677]

>>440590
>that banks actually do their job
>that banks have never fucked up before and, for example, created a housing crisis
>that 90% of people are fucktards and make mistakes
>that banks will do this for you before loan approval, and do it repeatedly as you sift through distressed $10k properties
>that the banks failure to find an encumbrance releases you from liability
>that that this knowledge does not have other value, e.g. price negotiation

dude never trust the bank to do everything for you. the more they will let you control, the more you should. there's a whole host of issues that the bank won't care about but you ought to.

however, most importantly, the bank doesn't start checking this info until youve made an offer and there's a contract on the table. at that point, if the seller accepts, you might be left looking for a way out of the contract. usually its easy to get out if the inspection is bad, but sometimes it becomes a fight.

its much better to go into this having done some free research online about the property before you make an offer. you can condition the offer on the removal of a lien, for example, and settle that issue before you even reach the contract stage.

lastly, in my experience, the bank does do these for you at all: they simply say "we need a title search" and "we need an inspection" then its your job to go get them and prove clear title before they approve a loan.

YMMV, don't take my word for it, gl, etc.

[Anonymous No.440688]

>>439581
In the upper one the green and yellow have to fill up 3*5 = 15 blocks, in the lower one 2*8 = 16 blocks.