Homes in Foreclosure!?

Question

What are the requirements and steps taken in order to buy a foreclosed home? Has anyone done it and been sucessful? It's it worth it to try and buy a foreclosure as a young couple? Are there informational books to help understand the process?

Let me know your thoughts!

Answer 1

We just bought a house a few months ago that was in foreclosure. A good real estate agent is need to do this. You can go to hmbireo.com to look at homes listed through hud, they do alot of foreclosures. The homes are cheaper but some need work, what you save is usually more then what the repairs are. You have to pay $1000 to place a bid and you will want to bid less than they are asking, they list it at more than it is worth. Our home listed for $98,0000 we gave $65,0000 and had to do about $5000 worth of repairs but the house now appraises for $105,000. You have to be careful of the web sites that say they have bank foreclosures and they charge you for a list because they usually will take your money for nothing. Check out the web site and be sure to get a real estate agent that can do HUD bids. Good Luck

Answer 2

Foreclosure homes can be a great investment or a big lost if you don't choose wisely. I have purchase 3 foreclosure homes in the past. 2 of them happen to be my primary homes and I'm still living in the foreclore home. Foreclosure homes are a lot cheaper than regular ones, but you have to look at the condition of the property to see if there are any major or minors that need to be fix. Set a limit to how much you can fix the property and do your math to see if you will make any profit when you sell it. If the number doesn't match, then it's not worth it. If you are unfamiliar and unsure if the property is in good condition such as the foundation, then hire a home inspector to help you. It's better to loose a couple of hundreds then to loose thousands of dollar and a waste of time. Once you use an inspector a few times, you will know what to look for next time and you won't even need the inspector anymore. When purchasing a foreclosure, it's the same process as other homes, but some lenders do have some restrictions and conditions that you have to follow. We set a limit like no more than $5,000 that we have to put in the house, and if it's more than that, then we'll have to see if it will be worth it, if not, forget it. I recommend you to try National Lending Corp (NLC). They work with many many lenders nationwide over 44 states. Give them a call when you need a loan or just simply need a prequalification. I recommend you to get a requalification first before looking for properties so you will know your limits. And also when you write an offer, the seller will required a letter from your lender that you have been pre-approved, so you don't waste their time. NLC can be reached at 414-702-1537.

Answer 3

Foreclosure investing is a business to be learned. Start with research. Beware of latenight gurus.

In this market, banks will (in about 6-9 months) have some deals to offer a first time buyer. Buying directly from the owner in default or on the courthouse steps holds many risks that the beginner should be nervous of (like buying a termite farm, or other hidden defects). There are no protections at this stage.

All it takes to buy a foreclosre is the $$$. Again, there are many ways to handle this, even if you're broke. Study.

As a Realtor, I do not point first time buyers or new investors in this direction. It is "senior class" stuff. Study the links below.

By the way, I just read the answer above. Good stuff. HUD is not an option in California where I practice. The prices are too high.

Good Luck.

Answer 4

If you are looking for foreclosure properties to buy, the place to start is in the "Legal Notices" section of your newspaper. You will find the notices of pending action, and can contact the homeowners before they get further into the quicksand of the legal process.

Networking and making contacts with attorneys and lenders is also a way to find properties. Most of these people are good people who have had some tough breaks and need a fresh start.

There are also web sites that feature foreclosure properties for sale. These sites can be a great resource if you are buying statewide or nationwide, rather than in one city or county.

Answer 5

report the two financial disaster 7 or 13 in case you could make the homestead money, and your application costs. financial disaster 7 will do away with all your debt alongside with the debt in case you confirm to allow the homestead to circulate by way of foreclosures. With financial disaster 7 all money owed are cleared. in case you could locate the money on your place money, you would be required to make up the back quantities to maintain the homestead. All credit card debt decrease than financial disaster 7 is going away. in case you have a automobile you could sell off back to the economic company and launch some money. A financial disaster 7 will additionally disolve that debt. stay away from financial disaster 13 if accessible, that is going to hang-out you for 5 years and interior the long-term, it maximum probable won't show you how to.. you will pay each and everything back which incorporate on a automobile and credit enjoying cards. you could report the financial disaster your self. Get the varieties off the internet and take a speedy type online or over the telephone in handling debt (required yet ineffective) get the paper paintings in and supply up the foreclosures. i'm not an legal expert, yet an Engineer that has been by way of this, i desire the coolest for you. Spider nutrition

Answer 6

Putting an offer in on a foreclosure is part art, part knowing how to move bank bureaucrats, and always part speculation.

There are also a lot of things to beware of, more so than any other type of sale.

Get a good buyer's agent. Most REOs offer a decent Buyer's Broker percentage, so it won't be coming out of your pocket. And don't get your heart set on any particular one.

Answer 7

I found a pretty good little bundle of info. on how to go about buying foreclosures. Hopefully the links copy through... If not, I'll post the link below:

Foreclosure Home Buying Formulas

You’ve found the foreclosure home you’re looking for and are ready to purchase. He are formulas to help you as prepare to move forward with the purchase of your foreclosure home:
Foreclosure Home Bidding Rules
If you are looking at a bank foreclosure, then the rules of bidding are fairly simple. Contact your real estate agent or the listing agent and express your interest in the foreclosure home. Then:

1. Have your mortgage loan officer draw up a preapproval letter for no more than the price you plan to offer on the subject foreclosure home.
2. Have your real estate agent send the listing agent a letter of intent for the foreclosure home. The letter of intent differs from a full-blown contract in that it covers only the generalities of the transfer of the foreclosure home (i.e., price, financing, proposed closing date, etc.).
3. Once the listing agent receives the letter of intent for the foreclosure home from your real estate agent, the listing agent will send the letter of intent to the bank holding the foreclosure property. Be prepared to wait at least a week from this point, as banks work slowly and cautiously.

How Much To Bid For the Foreclosure Home
Obviously, one of the main considerations when thinking about placing a bid on a foreclosure home is how much to bid and, moreover, how to bid just enough to win the bid for the foreclosure property without overpaying. This is where the trouble potentially begins. Unlike HUD or the Veterans Administration (VA), which are both government agencies, banks determine the price they are willing to accept for a foreclosure home on a per property basis. Ask your real estate agent to pull the tax records in order to determine the amount mortgaged prior to the foreclosure. Do not try to bid less than the bank owes on a foreclosure home until it has been on the market for three to six months.
Do not be afraid of bidding below the mortgaged amount for the foreclosure home. A discount of 10-15% is the most you can expect, and the bank may still not be able to be this flexible regarding sales price. If you do not offer full price for the foreclosure home, be prepared to lose the foreclosure property to another homebuyer.
HUD Foreclosure Homes
Housing and Urban Development (HUD) is the largest single resource for real estate foreclosures in the country due to the fact that everyone qualifies for an FHA loan. (In contrast, the VA requires that you be a true veteran in order to initiate a veteran loan, thereby limiting the number of qualified loan applicants.) FHA loans also provide a lower down payment than conventional loan programs, as most first-time homebuyers opt for reduced down payments. Whereas the first-time homebuyer would be responsible for five percent down with a conventional loan program, an FHA loan requires only three percent down.
HUD/FHA Government Foreclosure Bidding Formula
Per the HUD/FHA government foreclosure bidding formula, you can bid five percent below the asking price at a maximum. If you bid less than five percent, the bid will not be accepted and your bid for the foreclosure home will be thrown out. If you require closing cost assistance, you must ask for it during the bidding process and this figure must be allowed in your final tabulation. HUD allows for a maximum of five percent for closing cost help, and in some states that amount is far less. Ask your real estate agent or mortgage lender for guidance.
VA Foreclosure Bidding Formula
A similar formula exists for VA foreclosure homes. The Veterans Association has the ability to be a little more flexible regarding sales price as the amount owed on the foreclosure home can play a larger role with regard to repairs. Whereas HUD allows no more than a five percent price reduction, the VA will sometimes take as much as ten percent off the price of the foreclosure home. The VA will also allow for six percent closing cost help. While one percent may not sound like a lot, it becomes fairly impressive when one percent of the price of the foreclosure home equals several thousand dollars.
Get educated, get a good real estate agent and get into a low-priced foreclosure home.

http://www.allhud.com/foreclosures/article.php?affID=3728&articleID=010&affID=3728

There are lots of resource online that are free and can give you a pretty good idea of how to go about doing things. Often though, authors add extra emotion words to get people pumped up or excited or whatever that confuses the simple "how to" message. Try to look through the emotional triggers and focus on the simple "how to" messages (they are easier than you think)!

Good Luck!

Answer 8

Try this site for a real estate agent that can help you find foreclosure.

http://realestateagentlive.com/index.php

Answer 9

its not always so simple and worthwhile. make sure you get a lawyer somewhere down the line. or look for an unclaimed property, or more!

Answer 10

check into HUD..GOOD SOURCE,, I BOUGHT my home throught them,you just have to be carefull sometimes they homes with MOLD.. so be carefull, good luck,, thank you for your time.. GOD bless you!