Originally Posted by PapayaVagina
Has anyone ever bought a home after it's been taken back by the bank? I know that's what's going on with this little place that I've been keeping my eye on. I'm just curious how the dealings are in that situation.
We did. We bought a house through HUD. It is a nice place, built in 2000. something the broker told us is don't rule out new neighborhoods. Most people who lose their house lose it in the first 24 months of ownership. We got a great bargain and our payment on a 3/2 brick house ($640-mortgage, taxes, ins & PMI)is less than we were paying for rent on a 2/2 apt. When we bought the house it was valued at $100,400. We paid $72,000. Becasue our house is newer, we don't have so many repair issues right now.
Aside from the mortgage, we paid cash for everything. I think we spent about 6K for down payment, fees, etc plus a fridge & washer (new) and a used dryer. We also had to pay for installation on a new water heater but it was under warranty so we didnt have to pay for the heater itself. It wiped out our savings at the time but it was worth it. We've been in the hosue about a year and a half and already have saved up almost 3K again. We make about 27K/yr.
In Dec we should be able to drop PMI and we are going to keep paying $675/mo (our old apt rent). Right now I am a SAHM, but once dd is in school I hope to work more. My goal is to pay off the house in 10 yrs. Then I am getting wood floors installed!!!!
To actually answer your question- the dealings were fine. We worked with someone who does a lot of HUDs so she knew how it all worked. HUD is slower- it took us about 6 weeks to close, but it was all good in the end.