Getting a Deal From Foreclosure Auction – on Memphis CW30 – ABC24 Television News
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Reported by: Lacey Crisp
Last Update: 12/13 10:16 pm
C0RDOVA, TN – You’ve heard about the problems in the housing industry. This quarter of a million dollar Cordova home is being foreclosed on. But first time home buyers are finding out they can buy it for a steal.
“I just need a good price, like to buy a house. I have a big family so this is the best time to get the best deals,” said Abdulwasy Yusuf.
Abdulwasy Yusuf is looking to buy his first home. He lives in an apartment with his wife and three daughters. He says he’s ready for the American dream.
“I’m really excited. I hope I get a good deal, and I hope my family can get in a great place,” Yusuf said.
Crye Leike General Manager Steve Brown says Yusuf and his family account for most of the foreclosure auction sales.
“The first-time buyers are thinking, ‘interest rates below 5 percent, best prices in forever, I still have a job. Maybe it’s a good time to buy.’ It is a good time to buy, it’s a great time to buy,” Brown said.
Brown said investors are buying up about 30 percent of the homes to either rent out, or flip. Brown said you can get a great deal on foreclosed homes, if you do your homework.
“Those homes are being sold as is. That means you need to go into it with your eyes wide open. Some have issues. If they termite issues, you’ve bought those problems,” Brown said.
You can bring a home inspector into most of the homes on the foreclosure auction. Brown said if you buy one of these homes, you will not owe any back taxes on the property.
“There really hasn’t been a better time to buy,” Brown said.
As for Yusuf’s family, they’ve looked at a handful of foreclosure homes in Cordova.
“It’s in good shape, that’s the main thing. You need to change internals,” Yusuf said.
You need to bring a $5,000 cashier’s check if you are planning on bidding on a home at the auction. That money will only be cashed if you buy a home. It will be used as a good faith payment. You should have your financing ready before you go to the auction.
Banks do have basement prices on the homes. If the bid isn’t high enough, they won’t sell.
If you are worried about your credit, the Federal Housing Authority can help you with a loan. If your credit is around 620 and you have a job, you would be considered a good applicant for a home loan.
The foreclosure auction is Monday, December 15th at the Memphis Marriott Cotillion. Registration starts at 5pm and the auction starts at 6:30pm.