2007-01-31 11:59:25 · 5 answers · asked by amg 1 in Business & Finance ➔ Renting & Real Estate
It depends on what part of the foreclosure procedure the owner is in when you purchase the house.
If you purchase the house in the pre-foreclosure stage that is the owner is behind several months of monthly payments. The bank has or have not placed the house in foreclosure.
You can purchase this property from the owner for what the owner want in his hands, bring the current loan current by paying all back payments and any fees that were charged. Say for instance the owner was 4 months behind in payments when the lender placed the house in foreclosure.
An example of this would be if the owner was paying $1500 per month with 4 months behind that is 4x$1500= $6000, the owner wants $10,000 to sell any existing equity he has in the property and move on to start fresh, and the foreclosure and other fees were $2,500 so your cost out of pocket is $18,500 and take the property subject to the existing loan. Now you will have to figure out any fix-up cost and holding time to determine if this is a profitable property to purchase for you.
Now the other way is at the foreclosure sale or bidding. Before you can enter the bidding you must show the person holding the auction your ability to pay the very minium bid with cash, cashier's check or money orders. You will not be able to bid if you have a pre-approval or a pre-qualified letter, or a bank statement indicating you have 5 million dollars in the bank. You must show up and prove that you have the money in hand to even bid. I don't even think a letter of credit will work, though I am not sure about this.
I hope this has been of some use to you, good luck.
"FIGHT ON"
2007-01-31 13:37:48 · answer #1 · answered by Skip 6 · 0⤊ 0⤋
Those are all good answers but the bottom line is you have to have the deposit amount (listed in the paper) in the form of a certified check. When you win the auction you have 30 days to come up with the money in full. If you have your mortgage all lined up you should be all set. the deposit is non refundable so be careful.
Re agent,
Remax
2007-01-31 13:58:09 · answer #2 · answered by frankie b 5 · 0⤊ 0⤋
No but you will have to have some cash for earnest money when you submit a bid, and you have to have your financing all lined up, not just "prequalified". It is just like buying another house, the bank or govt just doesn't like the negotiating game like some people!!
2007-01-31 12:05:08 · answer #3 · answered by Lovejunk 3 · 0⤊ 0⤋
I agree with AA. However, it depends on the particular trustee holding the auction. Best bet is to observe a few auctions and learn first-hand how it's done.
2007-01-31 12:09:24 · answer #4 · answered by Gee Wye 6 · 0⤊ 0⤋
usually.
the guys buying them are usually pros that have several cashiers checks in their wallets that total what ever the property costs.
2007-01-31 12:03:49 · answer #5 · answered by AA 3 · 1⤊ 0⤋