first foreclosure

[Kenneth LaVoie]

I am about to buy my first foreclosure -- it's actually an REO, technically -- "single source". Owners bought it a few years ago for 107k -- buyer just backed out at 76k when he found cracks in foundation -- They relisted it day before easter at 59 and I offered 56, got it for 57,500. (4 bedroom cape, interior redone) The furnace most likely froze, as it was not winterized properly and there's some plumbing leakage. Foundation does have cracks but I'm not sure the extent. I plan on having building insection with foundation specialist, and already have estimate (approx 7k max) to take care of all plumbing and heating issues. Also need to either tear down chimney or reinforce, replace downstairs carpet in one room, remove rotted rear deck. I will be renting it out for 800 per month (poss. 850). 25% down, 5.75% 20 year / 3 year ARM. Then I'll scramble to find a 30 year LTV type loan to get the dp for my next one! (it is also in a nice, working class stable neighborhood)

It is via "quit claim" but my broker says that it is common to still have title search and insurance -- I trust he knows what he's talking about, but does anyone know differently?

Thanks all!