Buying a FORECLOSURE and 10 Common Mistakes People Make

If you are new to real estate or a novice investor we're sure you will agree that Wayne Turner shares valuable information that anyone can use to succeed.
In this episode (Video) Wayne shares the 10 mistakes that he and his clients have made over the years when buying foreclosures and most importantly how to avoid making the same mistakes.
For nearly 30 years Wayne has experienced just about everything when it comes to real estate and he's an open book when it comes to sharing his experiences.
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DISCLAIMER The contents of this video are for strictly educational and entertainment purposes. This video is not intended to provide financial, accounting, tax, or legal advice. For financial or legal advice consult with financial advisor or lawyer. I may earn commission from purchases made through links in this post.

[@tabbott429]

I bought an abandoned foreclosure in 2009. It was turned into a HUD house. i paid 9900$ cash--$11k total with tax/fees. I gutted it and remodeled it completely in 6 months while living in my old house for free saving my unpaid mortgage payments. I HATE paying interest and have been debt free ever since. I do all the work myself so there is no labor cost. Im a licensed builder by trade. I got burned buying a foreclosure right before the market crashed in 2008 and i couldnt sell it and was buried in debt so i rented it out for a year then walked away. It wasnt meant to be as far as timing went so i walked away from my own house too as it wasnt worth what was owned thanks to the banks destroying home values with their policies. I looked around for cheap foreclosures and got out of debt by paying cash for a fixer upper instead of paying a mortgage for 30 years. My credit was bad for 10 years but now its 800 again and i still dont have any debt.

[@matthewronson5218]

Good for you, my friend. Well done.

[@eriq54321]

I brought a house in 2010 in Baltimore city for 8k through homepath , I did the same by doing the demo and renovation. The neighborhood now is worth around $150k. I wish I were smarter than , I would have brought many more at that time , prices now are ridiculous.

[@Kudeghraw]

I threw my hat in the ring just before 2020. It was the last time you could get a good rate for prime credit. Now folks are paying near 8 percent for "prime" rates. I definitely won that battle as my house just went over double value this past week. I chuck 4% of the total principal each month as a payment so I will be done in 22 months (of a 30 year) as I have been doing it for 3 months. Its the ultimate fixer upper, but I know all the trades and don't know all the codes, but I learn them quick before getting into a project. One tip I can give home builders is if you have a variety of issues, just lose the drywall and expose the framing up front. Don't try to save old drywall. Tear it out, get your wiring, plumbing, HVAC done, and button it up. If you are doing any basement plumbing, be sure to install a backwater valve before pouring the crete. I can't imagine what this house is going to be worth when I fix everything. Going to be nice having all that extra principal money to put toward repairs. Not just basic repairs either. Premium repairs like getting insulated vinyl siding to give you an edge during those sub zero temperatures. Installing a jetted tub to replace a basic tub. Creating a much fancier basement bathroom vs the shower head attached to a sewer main with a U bolt it started with. I can't get to 800 because you can't have a clean slate and get that high. Always have to tie yourself up with credit usage. I can get to about 790 with modest credit usage and no debts other than house. The only way it gets higher is if I charge 3-4k and get it paid off within the month of charging.

[@dougcook5167]

As a long-time home rehabber, your recommendations on what not to do are SPOT ON! Your advice to pay contractors and handymen for their upfront quotes is brilliant, as it makes them more willing to partner with you at reasonable prices. For budgeting money and time, I plan for costs to be 50% over my initial estimates and everything to take three times longer than I originally thought.

[@kathyhuckaby3403]

I felt like after listening to this entire video I had just read an entire book! Wow!👍🏻

[@TheRealWayneTurner]

I need to write a book.

[@jjohnsengraciesmom]

Yes. It is a lot. That is a good thing.

[@ros957]

I always look forward to the information you provide. Thank you

[@AshleyRDB]

Wyane, this was posted just for me. Yesterday morning, this was the 1st video in my notifications right before I went to my 1st real estate tax auction. I did watch this before I went. I did bid on 2 properties yesterday and lost both thanks to you!😊 After I went over my cap by 10k, a Wayne Turner voice popped in my head & and said, "You're getting emotional." So I stopped. Thank you for this video!🤍

[@mrlarry999]

I enjoy your channel Wayne. I’ve seen a few of your videos in the past, and the occasionally pop up in my feed. I recently subscribed and have been watching your videos. Keep up the good work. You share very valuable insights from your direct experience. 👍🏼👍🏼

[@mikewalker5618]

Very educational, and as always- thanks !

[@cheryldunaway9177]

Appreciate the great ideas and thank you for saving me time and money for the information. Best to you going forward!!

[@dalitohana6979]

Thank You Wayne!!!!

[@dawngrace1317]

Thank you as always Wayne ❤

[@thecontinental8978]

Thanks for sharing your knowledge.

[@ricardofonseca1970]

Precious tips. Thank you.

[@dustinschneider935]

Thank you for another wonderful video. All the help you give is great.

[@Moving.To.Charleston]

Great advice Wayne, thanks for posting this video 😊

[@user-sh4ys4bb8s]

Thank you for the information.

[@DannyBoyDuffy777]

Thank u for taking the time to spread the knowledge loved the video

[@kathyhuckaby3403]

You are soooo helpful. Thank you.

[@TheRealWayneTurner]

Ty.

[@courtneyfulcher5255]

Mr. Turner, thank you so much for the most valuable information in this video. I’m some what knowledgeable about home buying and fixing stuff in my own home but your information has taken my knowledge so much further. I thank you so much for your kindness and time for putting together the info for us out in the public trying to make good home buying decisions. Thank you, thank you, thank you. I’m so appreciative!❤😊

[@jasmith1867]

I watch your videos a couple times a week. I have learned something from every one. Some of these things I already use but now I know I'm doing things the right way. Thanks

[@delalohemesixe]

Thank you! Greetings from sweden

[@user-wu1kg7yn5p]

Fantastic video! Thanks!

[@youmayberight2434]

Thank you

[@ThomasBaird11]

Thank You for the info!

[@gusloader123]

Good video with helpful tips. Good advice about the "Flood Insurance". In the county where I live there is a river that is winding and long. It goes all four directions of the compass. The Army Corps of Engineers built a dam (and formed a lake) to help control spring floods, and usually it has been helpful, but occasionally there has been some flooding. For some strange reason several people build a house within a hundred yards of a river or stream, or contractors build homes, and the city, county or State government officials allow such foolishness/silliness. Now every house within one mile of the riverbank must have Flood Insurance within 2 counties. It is added on to the monthly house payment.

[@ThePropertyProject]

I bought a place that had been sold on seller financing, buyer didn’t make payments and seller reclaimed it. I was a little nervous buying, hoping to avoid a difficult seller and any legal fights. Turned out to be a totally legit and awesome seller. Really happy with how it turned out.

[@bravewave2084]

Flood zones. Lost my home from storm surge ,Sanibel. Flood insurance doesn't cover storm surge, at least that's what my agent on MidAtlantic coast island. Make sure you check if you live in storm surge area.

[@TheRealWayneTurner]

That’s frustrating

[@bravewave2084]

@@TheRealWayneTurner It's a fact I learned while living in Mid-Atlantic on an island. Got outta there and retired in a mobile home. Home stood strong all fancied up new siding, high impact windows, new AC/heat. Lost some of the hurricane roof, and ac was standing on her head, no broken windows, new doors were fused locked from salt water, 8 ft in the house,, fridge was perched, suspended sideways with door open exposing moldy stuff. The whole place, minus what I packed in car, molded. Had to pay to demolish and remove. There was no insurance offered. Hey, that's another issue with coastal property. Make sure you can get home owners insurance if you live near water. Or anywhere in Florida! Lol

[@majorlagg9321]

Your agent was full of crap. Storm surge is covered by flood insurance. Always verify what these guys tell you. www.fema.gov/fact-sheet/wind-damage-versus-floodwater-damage-what-you-need-know-when-filing-claim

[@positivechic1463]

You have got to be kidding me, who knew? I would have assumed my flood insurance covers storm surge

[@jamiegoodson950]

Great informative video Thanks for sharing.

[@richardavery2244]

All of is excellent advise simply excellent 😮😮!

[@darkmanzz]

I like your videos and look forward to watching them

[@lateshiakellman4657]

Thank you for the information, much appreciated!

[@TheRealWayneTurner]

Glad it was helpful!

[@philiplarson8228]

Wayne always you have a good advice. Always preach to get title. Insurance is worth the value. I am also seeing what you were talking about. People were so angry for losing their home. They Did destroy the inside and the banks will not cover it and right now they’re not budging trying to get full market value I have tried numerous times. don’t forget the squatters it’s starting to get worse. I was viewing a home in Diamondhead, Mississippi and me and the realtor was just stunned and law-enforcement. Couldn’t do nothing about it watch out for this.

[@bearb.7406]

We found you a little late. However we learned a lot so far. Our thanks...

[@southparktrap1279]

Good advice

[@NusratJahan-gr8ir]

Good information's

[@Litt1leMe]

Great Video. I'm currently not looking for a home, but my sister is, and this will help her

[@TheRealWayneTurner]

Glad it was helpful!

[@artisticagi]

2:23 chance to inspect Grace period 😊

[@Alr1ghtyThen]

What's a good way to find local listings for foreclosures? Thanks for video!

[@WhitneyRoss-dj4rf]

The cost of living seems to be increasing every year, making it harder to keep up.

[@ChloeCarter-kd7gz]

Indeed, it's becoming quite challenging to manage expenses...I feel like I'm always chasing after expenses.

[@TerriMelzer]

I've actually managed to stay ahead of the curve. I'm even contemplating early retirement.@@ChloeCarter-kd7gz

[@ChloeCarter-kd7gz]

Impressive! How did you achieve that?@@TerriMelzer

[@VictoriaAllen-ml8kx]

@@ChloeCarter-kd7gz Actually, I'm way ahead of the game. I'm even considering early retirement myself.I let Katherine C Boone handle all my-portfolio .

[@BrianDouglasCapps]

@@VictoriaAllen-ml8kxhave you heard Katherine c Boone have been getting a lot of buzz lately for her management skills.

[@gregsandifer2398]

20 to 30 ....if I know you and have a history on projects....never a charge for estimate...if they are 'Investors ' I've never worked with ....I may give you a ballpark number....I've found after 25 years as a remodel builder most of these do not happen . They always ...always think it will cost much less than it actually does.. ..if we have a good working relationship I will make the project happen now.....and complete on schedual....general info for anyone that can use it....great chanel here!!and top notch information

[@Alejorv1]

Thanks Wayne! Always a pleasure to watch your videos, I live in Miami Florida, anyone you know that can advice me in identifying real opportunities down here?

[@blankprivatecompany9296]

This video is very helpful I’m hoping to find a home to stay in permanently

[@jburch1544]

Careful for sure, foreclosure in our area, house completely trashed (teardown) land also trashed with junk,garbage, tires, price is really just land and even that requires money to cleanup to make usable.

[@andreycham4797]

Contact the last owner and ask him to clean up . He may paint walls for you too

[@tomr9661]

You only very briefly touched on the actual buying process. Going in, you will likely be competing against seasoned pros, - like yourself, savvy real estate agents, big moneyed investors and others experienced in the game. Would you recommend having a relator in your corner before going into it?

[@TheRealWayneTurner]

Absolutely.

[@dougrobinson5830]

AND plumbing! If it has set through winter with no heat on there are going to be frozen busted pipes. With a slab floor you will be in so much trouble.

[@TheRealWayneTurner]

Exactly

[@alexgordonepic]

i agree, if you want a thorough assessment, you really should pay a pro to check everything like a home inspector then a contractor or 3 who charge for a detailed bid/report etc... if you just call folks for bids especially free bids... you wont get much details... every big roofing company wants to replace the roof. every big hvac company wants to replace the ac system. they dont want to find the leak and patch it.. and they dont want to look at anything else but what their biz is focused on.... you want to find those pros that know about it all. :) and they are not going to give you a free bid. and it wont be 20 bucks... be prepared to pay them at least $100/hr it could save you thousands.

[@user-vn6hi2bi3g]

An item that has always been on my list for distressed purchases and forclosure is for me one type of distress purchase among many is to have in addition to having the financing/money ready and if fact more important is to have your advisors in line. By that I mean a realtor for comps, trades ready to give estimates etc. so that during the due dilligance time an assesment can be made w/o the stress of trying to get/locate a roofer/trades to inspect the roof, or a home inspection service that will do a peliminary overview of major items needing costs then being able to advise your advisors of known problems. Being to assure costs at this level reduces stress by orders of magnitude and gives a fact based go or no go decision to back out or complete the purchase. Ray Stormont

[@dipndalip]

Dude

[@dipndalip]

Your writing absolutey.....

[@dipndalip]

sucks....

[@dipndalip]

KZbin will not let me post constructive criticism in a single comment. It is like your paragraph got in a train wreck. You are causing any reader to not breathe in air due to your run-on sentences. The best place for you to start is to break your sentences down and read what you write.

[@user-vn6hi2bi3g]

Thank you for taking the time to respond. I am assuming you agree with the suggestion I made and While I do not agree that respiration and reading are connected the best place for you to start is learning to spell better or spell checking prior to sending.@@dipndalip

[@KarlKarsnark]

I believe there's an abandoned, foreclosure in my neighborhood. How do I go about finding its current status, or who may presently own it? Thanks for all the great vids!

[@mauihomebuyers]

Check your local county property tax records

[@khanconsultant]

What website to buy auction/pre foreclosure properties in state of Indiana?

[@SurajNagvekar]

When I look at the foreclosure homes on Zillow, it doesn’t tell me if , it is still owner occupied. Where would I get that information?

[@BuckMT-xf1qj]

Appreciate you for the message I'm retired divorced want to purchase small home with few Acres any suggestions, God bless you & to Hank you ( Michigan)

[@nwilt7114]

2:34 Does that include online auctions of foreclosures?

[@makky100]

hi Wayne do i have to to get title policy even for regular house purchase ( not foreclosure one) ?

[@matthewronson5218]

You don't have to but the only greater risk would be buying sight unseen and waiving the inspection. I am getting a title policy and specialized inspections as appropriate, i.e. septic system inspection.

[@jasonhadley7409]

Ever heard of an Allodial Title?

[@MADDCHOPER68]

I learned that the hard way thousands of dollars later live in New Hampshire on the Maine line went to work in Maine while fixing up the place they stole about everything I own. And it was a money pit.. if I had a cord of wood in the basement 1700 cement blocks I almost put a cord of wood in that basmemt 5 gallons of diesel fuel in a case of beer we'd had a barbecue😂 you got to know when to give up and you're going to have good neighbors finally walked away thank God.. I grew up in the construction business my dad was professional builder by trade but if he was alive at the time he would have just slapped me before I bought it😂 sometimes you can't fix stupid.. but I learned a very good lesson. . next piece of property I buy buy there will be no neighbors only trees😂 On a good note I had a view that people come from all around the world to see. I'll never make that mistake again. In Carroll county New Hampshire land of the mountains and lakes you might as well build something out of solid masonry fort Knox keep your neighbors out😂

[@tonyalexander3842]

# 11 is how much the Government is going to bleed you in taxes. # 12 in how much the insurance company is going to bleed you for coverage.

[@RaulPelcastreRealEstate]

In CA if you sale within 18 months you need to disclose all the information of the contractors.

[@Erati243]

@TheRealWayneTurner Hmm you say banks wont wait around on you... but if its a foreclosure arent you still dealing with the owner? im confused.... explain why the bank matters if its not an REO....

[@matthewronson5218]

If it was foreclosed, the lender assumes the Title or Deed to the property.

[@danieldanfoxworth9528]

What happens when the Gov't. comes along and expands the flood zone maps and now your in a flood zone when you were not when the property was purchased ?

[@JohnDoe-np3zk]

Like me in 2023 on three lots? County planning full cooperation with FEMA and cost me about 100k.

[@getinthespace7715]

Never! buy a forclosure with someone in it. My state after the sale the original owners have up to a FULL YEAR of actions they can take to stay in the property.

[@harmonicatdanny]

So I lost my job two years ago taking care of my mother all of a sudden. I have 70 K and 830 credit score. can I still buy a house or a foreclosure?

[@christy1768]

Buy a cash deal

[@albertperez5889]

How do I see If i can get one of this house

[@TheRealWayneTurner]

Reach out to me at ContactWayne.com

[@Atah714]

I bought a foreclosed house in 2009 for $110k. Sitting nice on $500k in equity. So Cal

[@ela111961]

Yes, foreclosure during those years are really house in good shape. Only the owner finances are not in good shape. Good thing you have funds available in good timing.

[@JohnDoe-np3zk]

In 2023 fema fukked me on flood plain changes along with others. Likely cost me 100k.

[@riverlife2379]

Foreclosure look good up front But you never know whats behind the doors.... Fix them up at cost...the property taxes costs insurance GOES UP! UP! AND UP.. WHY CAUSE U IMPROVED THE VALUE OF THAT PROPERTY.. jb.ok

[@TheLocalredhead]

What Would Wayne Turner Do?

[@TheRealWayneTurner]

Buy real estate.

[@Donkeyearsa]

Fat chance you will get a 20% down loan! More likely it will be a 30% down loan. If I wanted to pay cash I could and the banks still demanded a 30% down. The only way you will get a 20% down loan is if it will be your primary residence.

[@mauihomebuyers]

Please be careful with what you’re teaching people; tip 2 said “anytime you buy a foreclosure you can have the property inspected and your deposit will be returned if you decide not to buy it”. I feel like that can be VERY misleading for beginners, who typically don’t understand the difference between a foreclosure sale and an REO sale. I appreciate your tips and most of them are great, so not trying to give you a hard time. I just think it’s important to be careful with your wording. There is absolutely no contingency period when buying at the foreclosure auction aka sheriffs sale in every state that I’m aware of. I also have made offers on REO foreclosures where the bank does not allow an inspection contingency (particularly in recent times since the markets have gotten hotter than usual). Anyway I really wish that you would have explained that you’re specifically only talking about bank owned properties because almost none of these tips apply to what I consider to be a true foreclosure sale, but I do agree that these are great tips for folks that are looking at buying REO /bank owned properties on the MLS. Mahalo, Greg from Maui Home Buyers

[@themadmillionaire]

I understand, in those cases the terms are outlined ahead of time which means it would not be applicable ie, all cash due at the time of sale.

[@Keepitoriginalministry]

Can anyone buy a foreclosure house or do I need a license

[@riverlife2379]

THERE IS NO LICENSE INVOLVED BUYING ONE.... BUT IF U WANT TO SELL THEM U WILL NEED A PERMIT LOCALLY EACH JURISDICTIONS DIFFERENT...OR BETTER BE A FORECLOSURE SPECIALIST... JB ok

[@pipelayer6954]

IAM POOR with bad credit

[@riverlife2379]

U don't need a foreclosure or a HOUSE....U NEED A ⛺ TENT JB.ok smilin

[@Livefreeordi]

This is not the case in Ohio.

[@matthewronson5218]

What isn't?

[@josephthibeault9919]

You don't want a house with a ghosts.

[@tracy419]

Sounds like a business opportunity 😉

[@bw4ut]

Where’s the logic in paying for a quote? You think the contractor is going to give you a small discount?

[@shaneapplegate1975]

I hate to upset you people but if you're not paying cash for it you can't afford it in the first place ✌️