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TJ, Esq.
TJ, Esq., Attorney
Category: Real Estate Law
Satisfied Customers: 11626
Experience:  JD, MBA
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If a home was purchased 5 yrs ago for 135,000 what can I

Customer Question

If a home was purchased 5 yrs ago for 135,000 what can I expect to pay on a foreclosed loan.?
Submitted: 2 months ago.
Category: Real Estate Law
Customer: replied 2 months ago.
What is the usual closing cost when purchasing a foreclosed home from a bank?
Expert:  TJ, Esq. replied 2 months ago.

Hello and thank you for the opportunity to assist you. My name is ***** ***** I'll be glad to help if I can. However, I am unclear about your question. Can you provide a little background information and perhaps clarify the question? Thank you.

Customer: replied 2 months ago.
If I purchase a foreclosed home from the bank that has the original mortgage, what closing costs can I expect to pay?
Customer: replied 2 months ago.
How do I know that I am not paying too much for the house? It was purchased 5 yrs ago and is in good shape. Cost 5 yrs ago was 135,000.
Expert:  TJ, Esq. replied 2 months ago.

Hi again.

The answer depends on what you want to buy. If you are paying with cash and want nothing more than the deed, then closing costs will be virtually nothing, except possibly a small fee for preparing the deed, depending on the law firm's policies. On the other hand, if you are taking out a mortgage, then you'll need to hire an escrow agency/title company, and that will require the preparation of various legal documents, title insurance, surveys, title searches, etc. It would be the same as buying any other house (i.e., the foreclosure would be irrelevant).

Expert:  TJ, Esq. replied 2 months ago.

As for whether you're paying too much for the house, you should retain an appraiser. The simple way to get a good feel, however, is to look to see what other similar houses in the neighbor have been selling for.

Expert:  TJ, Esq. replied 2 months ago.

Of course, you will also need to look at the condition of the house if at all possible. Even if houses are selling for much more than $135k in that neighborhood, that would be irrelevant if the house is trashed.

Expert:  TJ, Esq. replied 2 months ago.

Does that answer your question? Please let me know if you need clarification, as I am happy to continue helping you until you are satisfied.

Expert:  TJ, Esq. replied 2 months ago.

Hello again. I didn't hear back from you, so I'm just checking in to make sure that you don't need more help on this issue. If not, then please remember to provide a positive rating via the stars (and note that your positive rating is the only way that I'll get credit for helping you, so I greatly appreciate it). Thank you!

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