how do i find foreclosures and short-sales?

[TrophyHusband 0]

and what are the drawbacks of buying a house under those conditions?

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[futuredivot 0]

How? Keep a list of professional musicians handy

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[BIGUN 1,488]

When I was doing this some years ago, I developed relationship with my banker. The bank has a list of non-performing assets they'd like to get off the books. As to drawbacks, you'll need to ensure there's not a 2nd mortgage (equity loan) or other encumbrances on the house (liens) which can sometimes be for 20%-30% more than market value.

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[tigra 0]

First of all, just because its a foreclosure doesn't mean its a bargain. The contracts tend to be one sided, without contingencies or room for negotiation, and more often than not, you'll lose your earnest money if you don't close. Pretty much all the properties need work ranging from cosmetic to structural. You are often expected to bid on or buy without even seeing the property (forget a property inspection) and you are buying "as is". You'll also typically get a deed that offers less protection than a standard warranty deed, although at least in my state the seller still provides title insurance. In my area, I know for a fact that HUD tends to leave their properties pretty much unprotected until closing (one padlock on the front door with literally thousands of keys floating around.) Items and fixtures (even crown molding) can go missing between the day you sign the contract and the day you close. Yes, there are still some real bargains out there, but not quite as many as the infomercials would have you believe.

[ltdiver 3]

A helpful web site that may answer some of your questions.

http://homebuying.about.com/od/4closureshortsales/Foreclosures_and_Short_Sales.htm

ltdiver

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[countzero 7]

also see if there are any relator associations in your area that list them. here in houston the local relator association is now listing them on thier web site.

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