Posted by Ed Copp (OH) on May 28, 2002 at 20:36:10:
often result in vacant lots, not always but often. I would suggest that an appraiser, or a friend are not qualified to estimate the cost of saving this house. That is what we are talking about here. Without a foundation the house will fall down and worthless. So get a qualified person, like a structural engineer to estimate the cost of repairs, and then one can know how to proceed. If this house is only worth $50,000 there is no sense in attempting to “save it” for $96,000. Generally I would also suggest leaving problems of this nature to the qualified people to solve.
Foreclosure opportunity? - Posted by Lora Alexander
Posted by Lora Alexander on May 28, 2002 at 14:03:07:
I know very, very little about foreclosures but a co-workers is inevitably going to lose her house to foreclosure and even though I think I know the answer to this one, I thought I’d run it by you guys since there might be something I’m not considering.
The house is in Minneapolis in a decent location (the housing market here is insane…TOTALLY a sellers market w/most homes selling w/in days of being put on the marktet). Anyway, the owners owe about $96,000 (purchase price was $110,000) BUT it has a HUGE problem w/the foundation. It is cracked and is tilting, I guess. I was in the home once and it very nice other than the foundation problem. Supposedly they had an appraisal done 16 mos ago and the guy appraised it at only $88,000 (homes always increase here and I’m sure it’s worth more now but probably not a whole lot). Obviously I can see there is little if any equity in it but I am sure that if the problems were fixed (and I know this will cost a bundle to fix…I do have a friend who can possibly fix it cheaper than hiring a professional but I’m not still not sure what the cost would be)the home could sell for about $125-$130 thousand.
Is this just way too much of a hassle to even consider messing with? I just feel like someone is going to be able to make a lot of money on this somehow (an investor who is also a contractor who can do the work himself, for example). and it sure would be nice if it were me:)!
Anyway, like I said, I think I know the answer is that it is too much of a gamble. But if anyone has any other insight about the situation, I would love to hear it.Thank You!!