Foreclosures and age?

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Well, I’m 17 and I have about 2-3 friends who are willing to buy a house from me. I saw on the tv that you can get a foreclosed house for as cheap as 200/month, which I thought was great. However I’ve been looking into this and it seems I can buy it at actions ‘as is’ (which would mean I’d need the money), go directly to the lender and pay it off (and all pay-lag mortgages) and I could probably get it inspected, or go threw a bank’s broker which would be the safest but also cost the most. Anyways I was wondering which would be the best for someone whose looking for a cheap-house (broken heaters and little things we don’t care about) and some place to live and any suggestions or tips at all about purchasing foreclosed houses. Also, I was wondering how I’d get the money, (especially for the auction where it’s supposed to be the cheapest) do I have to get a loan before-hand and then works out the specifics from there or do I need to talk with the bank or some such about paying monthly? Also, would it even be *possible* for me to own the house under my name, and if it requires an 18 year old could we have the other party’s names as trustees to become part-owners on their 18th birthdays? I live in the great state of New Jersey, lol. Thx in advance 🙂

  1. Reply
    Thomas T
    May 4, 2011 at 12:17 am

    Before you purchase any foreclosed property at auction, you would be foolish if you did not have a title search (exam) done. Contact a real estate attorney or title company. Have them check the title to see if there are any defects, other liens, judgments, easements, restrictions, zoning limitations, real estate tax arrearages, boundary line disputes or reversion clauses. The title exam should also confirm that the foreclosure was properly performed. If the property is a condo or part of a planned unit development, it may also be subject to association dues, assessments or special levys. Find out what the municipal taxes are and how much you will need to pay after you acquire the property.
    Ownership of real estate if you are younger tan 18 may be voidable but not necessarily void. That means you may be able to get it as long as no one raises a stink and challenges your ownership.

  2. Reply
    May 4, 2011 at 1:11 am

    Most of your question is moot. You cannot buy any property before you are 18. You cannot legally enter into any legally binding agreements until then. Buying property with a bunch of friends is not a good idea in general, no matter what the ages. If you guys ever stop being friends it all gets very messy and complicated. Getting into trustees and all that is even a bigger mess.

  3. Reply
    May 4, 2011 at 1:50 am

    Just make sure you close thru a title company and get title insurance to make sure you get clear title/ownership–I worked for a title company in TX for over 12 yrs. btw, foreclosures typically sell as is. Also, find out how much property taxes and insurance will cost to see if you can afford the house. You should talk to a mortgage broker, investor, or real estate agent about how to go about buying a foreclosure.

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