Foreclosures in New Orleans
I rarely listen to regular radio stations since my wonderful hubby gave me satellite radio for my car a couple of years ago. But the other day I happened to be riding with someone else and heard a commercial that just made my blood boil.
“I bought a house for only $199 a month!”
The commercial went on about the great foreclosure deals in today’s market and how you can buy a home for only $199 per month…just call for your list of foreclosed homes in your area.
Now, I didn’t call the number, but I’m pretty sure that the company (who shall remain nameless – mostly because I was too busy yelling at the radio to catch it) isn’t spending advertising dollars to give their list away. Hey, I’m all for capitalism and making a living, but this scam idea really got me going because there was so much important information left out.
First of all, I haven’t seen ANY properties that would come even close to being habitable that are priced at a point that would make the monthly payments $199. Heck, you can’t even buy a decent car for that price much less pay principal, interest, taxes and insurance for a roof over your head and your little piece of the American dream.
Second, the implication was that “the list” is some super secret information that only those willing to pay for can get access to. Ahem…did you know that foreclosed properties are listed with REALTORS and that you can get “the list” free from your own agent?
I periodically get calls from people who are interested in owning a home, but only want to look at foreclosures because they think that’s where the only deals are. While the prices on foreclosures may be lower than other homes in a neighborhood, it’s usually because the condition of the property is worse. If you are getting a mortgage (and most people are) using standard FHA financing, many of these homes won’t qualify since banks typically don’t make repairs to foreclosed properties and FHA has some fairly strict guidelines for the condition of homes that they finance. There are many reasonably priced homes on the market right now that DO qualify for FHA or VA financing – and you don’t have to pay to get information about them or to actually see them for yourself.