CAN YOU APPLY FOR A LOAN TO USE TO BUY A FORCLOSED HOUSE?
2006-10-26 04:58:33 · 7 answers · asked by NAEEMAH G 1 in Business & Finance ➔ Renting & Real Estate
don't think so because you have to have certified funds for a depost at time of auction and must close within 30 days.
There is no need to use a real estate agent. Foreclosures would not be listed in MLS systems, they are posted in your local legal notice section of the paper. A real estate agent can not do anything for you that you can not do for yourself. If you see one you think you might be instersted in, do as much research as possible. You can not get into the house before the sale (unless you knock on the owners door and the let you in, which is highly unlikely)
Either pay for a title search or go to your county clerks office to research the property and any liens on the property. It very well could be a second mortgage in which case you will get stuck with the owners first mortgage. You go to the auction with your certified funds and bid (assuming the auction isnt cancelled, which it is a lot of times) If you win, you put your downpayment on the property, get a real estate attorney. Usually close within 30 days assuming the owners who lost he property don't fight it and get their house back.
2006-10-26 05:02:39 · answer #1 · answered by strtat2 5 · 0⤊ 0⤋
A house that has already been foreclosed on is owned by one of three entities: HUD (if it had been an FHA loan), VA (if a VA loan), or a Lending institution (conventional loans).
In Texas, all three will be listed in the MLS, and all three will require the use of a Realtor to place offers or bid on them. HUD and VA each have their own contract forms, and most lenders will add addenda to the regular real estate forms used in your state.
First, get with a Realtor who knows how to do them. Tell him what you want to accomplish (good price to live in, or flip, or rent, etc.) He can then get you with a loan officer who has available the kind of loan that will suit your needs. Find out what you qualify for, and about how much money you'll need to close the deal.
Now you're ready to start looking. Find what suits your goals, and make your offer! Good luck to you.
Make sure your Realtor knows how to do the type of foreclosure you're trying to buy. Some can be good deals, but usually foreclosure contracts are not very forgiving of errors and may cost money to you for delays.
Contact me if you're in Texas and I can help you.
If you already have a Realtor that you like, but they don't know how to do the HUD houses, have them contact me. For a percentage, I'll assist.
2006-10-26 08:02:25 · answer #2 · answered by teran_realtor 7 · 0⤊ 0⤋
Yes you can get a loan for a foreclosed home, but if it's in bad condition, you'll be more limited on who you can use. If it's in good shape, you might be able to qualify for a regular mortgage to buy the house.
Additionally, you can most likely get the lender to discount the payoff in lieu of going through the foreclosure process. This is a "short sale" and it can give you an even better deal.
2006-10-26 06:04:15 · answer #3 · answered by Anonymous · 0⤊ 0⤋
If the property is owned by the bank, then yes you would typically go and be pre approved by a lender. If you're talking about purchasing HUD foreclosures, that is a bidding process, but you would still need a loan to secure the property.
2006-10-26 05:16:08 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Yes, normally if it's already foreclosed it means there is no deadline to get your funds together. Normally the bank now owns the home and they may be willing to finance the home directly and give you a better deal if you take it off their hands.
A great resource is Foreclosure.com- they provide listings and tools and resources on how to buy foreclosed homes.
I'd do your homework there is a lot to know.
2006-10-27 05:53:40 · answer #5 · answered by Anonymous · 0⤊ 0⤋
The same way a regular deal does. But cheaper. Find an agent and get them to work for you. There is a saying among agents "Foreclosures don't come clean". Look at the property really closely. Check with your agent as to who is going to pay them. It is usually the Seller.
2006-10-26 05:04:00 · answer #6 · answered by Anonymous · 0⤊ 0⤋
read tips on real estate, loans and mortgages to help you better on this site
2006-10-26 05:14:54 · answer #7 · answered by lushy 3 · 0⤊ 0⤋