We searched the listings high and low for homes that met our criteria. We had a good down payment, but the costs for the homes being sold by owners were just a bit too much for what we wanted to have in a mortgage every month. You do not want to end up loan poor where you are struggling to pay debt every month. We decided to check out foreclosures in NYC. Sometimes you can motivate a bank or owner to sell at a tremendous gain to you. There are short sales and other options for you.
We monitored what was being foreclosed. Only a few of the homes met our criteria of a place we wanted to move into. We wanted something that was move-in ready to further reduce our expenses. In other words, our plan was to buy cheap and live in the house as is for five years until we built up some more cash. Instead of buying a lesser home at full price, we used foreclosures in NYC as leverage to get a better house in a better neighborhood for a lower cost.
People buy more than they can afford all of the time. Then they end up abandoning the home. Then the banks have a long foreclosure process you can sometimes speed up. You can even get liens removed if you are savvy. Yes, some people lost their homes due to health and tragedy. We were diligent to not go after those homes. We went after ones where it was obvious the people bought more than they could afford. This way there was not that guilt factor of using the system to get the banks or owners to sell at a loss to them. We ended up with a home that only cost us the rest of the bank loan that was due. We got a house worth more than what we could have afforded if we would have paid full price.