Analyzing a Foreclosure

[Mike Soofian]

Hi!

This is my first post so I am excited to finally get involved with the forums. I found a Bank Owned, Foreclosed property that I think is great at first impression. So it now time to collect the numbers and do math. I am not posting in Deal Analysis yet because I am still gathering ARV etc

It is average in size for the location 3Br/1Bath Colonial in Bergen County. Finished attic, unfinished basement, hardwood floors and steam heat... the images of all the rooms seam to be in good condition, nothing paint couldn't remedy. Built in 1926  @ $195k

I am 27yr old and just got pre-qualified for a $250k+ conventional loan but the woman I spoke with said I could probably go higher if I want... that aside...

When I saw it posted about a month ago it went "contingent" after about 2 weeks but is now back on market which makes me wonder why

At least for the sake of deal analysis, I want to call the listed agent but I would like to be prepared with questions so i can speak more confidently. Here are some I have prepped based on articles I have read:

1) How long has the home been unoccupied?

2) Has the home had an inspection recently? As I know it was recently Contingent...

3) Can you email me some comps?

Note: I tried searching for liens myself. Found through a bit of digging the lender company name and only found the deed on the county clerk website... I am assuming either no liens but will need a title company to look at that once under contract? 

Regarding ARV, I don't see any noticeable damage but assuming once under contract I will need an inspection done and then a contractor or two to price out for me? Also to add in cost for any additional things I would like to update in the home...

Please let me know if you have any advice or additional questions I could and should ask. 

Looking forward to community comments and guidance. Thanks!

[Mike Soofian]

 @Wyatt Franta @Yoni Benimetzky @Jenny Roman

Thank you so all so much lending your insight and experience. Got a referral for a real estate agent in the area whom my brother used and she is being very helpful as well. She had to go but will call me back in an hour. 

She said while the title is something to be concerned about but it is handled at attorney review.
However, one thing she mentioned that stuck out was that foreclosures generally do not have Inspection Contingency which she is saying is probably my biggest risk as you cannot back out while under contract if there is are big ticket issues. 

Thanks again and will post if I have any updates! Feel free to drop me more wisdom