MiddletownJournal.com

While the home "flipping" market is a risky venture most banks are unwilling to front in this real estate climate, those looking for a new home may find themselves at an advantage.

Banks are more willing to work with a private individual to get funds for a mortgage and repairs on a foreclosed property than an investor looking for a quick fix and sell, said Fred DeBiasi, president of American Savings Bank.

"It's a buyer's market, whether it's bank owned or a private sale, you are going to be in a pretty good negotiating position because things are not really moving on the market," he said.

If you have good credit and a ready down-payment, your dream home could be just one auction away.

A little elbow grease

When Matt and Jeni decided it was time to make the move back to their roots in southwest Ohio, it seemed like all the pieces fell into place.

"We really had no idea what we were doing," Matt said. "But we knew we could get a deal through a sheriff's sale."

Last winter the couple began looking on the Butler County Sheriff's Office's Web site and made a list of the homes that looked like a possible fit. They knew they wanted a newer home that was also not currently occupied.

"When we did three days of drive-bys (around Christmas time) we would look at the homes and sometimes go up to the windows and look in an take pictures," Jeni said.

"Sometimes there were still cars in the drive way and the garage door was open."

"That helped us scratch some off the list," Matt said. "We didn't want to deal with an eviction."

The couple finally landed their dream home at an auction on Valentine's Day. Jeni went alone, as her husband was sick, and found herself bidding against the bank.

"We kept going back and forth," she said. "He said $187,910 and then looked at me. So then I said '$187,911.' Then he was done. I called Matt and said, 'Guess what? We got a house.'"

But although the Liberty Twp. home was in good condition, it still needed work.

They received the deed in April and worked from then on through the month of May, making weekend trips from Bowling Green to replace the carpet, bathroom tiling, rewire the basement and rip down old wallpaper to repaint each room, Matt said.

"When we first turned on the water, the pipes in every room busted," he said. "There was water in the bathrooms and it was squirting out the siding."

They invested $10,000 to get it ready for their three children: Trace, 3; Sidney, 5; and Kelsey, 15. But when the property was reappraised by the auditor for $239,500, they knew they had still gotten a deal.

"We didn't want a home with somebody else's taste so we just put in the elbow grease and made it the way we want," Matt said. "We're happy."

Do it yourself

To buy a foreclosed property at sheriff's auction, you must have at least 10 percent to put down immediately after winning the property and have the additional funds available in 30 to 90 days when the deed is ready, according to county sheriff's officials.

At an auction, you purchase the home "sight unseen," meaning the property is sold as-is, including any damages.

However, it is also possible to buy these properties directly from the banks at a very heavy discount but be able to view the property prior to purchasing, DeBiasi said.

"The goal for a bank is to get what they've got invested in it," he said.

"The bank doesn't want to make a profit, they just want to get it out. They've got their hands full."