In a nutshell, please? Is this a very difficult thing to do? I dont’ even know how to start trying to figure this out.
Thanks!
4 thoughts on “How do you find and buy a foreclosure?”
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In a nutshell, please? Is this a very difficult thing to do? I dont’ even know how to start trying to figure this out.
Thanks!
You must be logged in to post a comment.
I take it by foreclosure you mean a property that has completely gone through the foreclosure process and is now owned by the bank. At this point the property is called a REO,or bank owned property.
Foreclosure means that the person is still in the property and still own the property. You would have to contact this person, make a deal to purchase the property from this owner. I don’t think you are speaking of this type purchase.
Bank owned or REO properties are normally farmed out to real estate agencies to sell these properties. You may contact a real estate agent that sell these properties. You will find them listed int your local newspapers. The newspaper ad will say bank owned, reo property.Contact the person that placed the ad.
Keep in mind that most bank owned property is sold as-is without a warranty of any kind. In other words the bank does not plan to make any repairs to the property, if there are any. If the property you select you might have a problem financing it through. In some instances you might be able to apply for and get approved for a FHA 203B mortgage that will allow you to repair the property.
There are some good properties that are owned by banks, you have to be careful and very selective.
Prior to looking for any property contact a mortgage broker that does FHA and VA mortgages. Get yourself pre-approved. Your pre-approval will indicate the amount of house you are able to purchase. This is very important in looking for a home to purchase. Once you are pre-approved you may now contact a real estate agent.
I hope this has been of some benefit to you, good luck.
"FIGHT ON"
Talk to your banker about your mortgage worthyness, arrange for a downpayment and talk to a realtor.
Your local real estate office has a list of those homes for sale. You need a good credit score, cash for down payment and closing of at least 10k
You should talk with a realtor. They can look up foreclosures for you, if this is the specific type of home you want to buy.
If you want to try to find some on your own, you can look in your local newspaper for Notice of Trustee sales. These are homes that are being foreclosed on. If you go to the trustee sale (date and time will be in the notice), you can buy the home then and there (but 99% of the time you have to have cash, you don’t have time to inspect the home, if there is anyone living there you’re responsible for evicting them, etc). However, if the home is not purchased at the trustee sale it will default back to the bank. Then, the bank will usually have the home listed with a realtor. So if you see a home listed in a Notice of Trustee sale, if you wait a few weeks you can usually find the home listed for sale.
You can also look at banks’ websites. Most of the large banks list their REO’s (fancy term for bank foreclosure) on their website.
As far as the actual purchasing goes, it works just like a regular home sale. The only catches are that usually banks won’t make any repairs to homes (even if it’s one that will affect whether or not you can get a loan on it), the asking price is usually their bottom-line and they won’t negotiate very much, they want to close quickly, but they can take forever to get back to you.