How do you buy a foreclosed property?

Question

This is kind of a "multi-question" question, but its only because I really don't know anything. What I really want to know is what do you need to have in your bank account to even think about purchasing a foreclosed property. What is the best way to locate a property; Internet, realtor, or both? Where can I find legitimate information on the whole proccess? I'm not looking to flip a home, I'm just looking for a residence that doesn't cost an arm and a leg. So if there is anybody that could point me in the right direction, I would really appreciate it. Thank you.

Answer 1

You can go to your local county courthouse and find out when they have the property auctions, ask what forms of payment they accept, etc. If you can get a list of homes that are going up on the auction block, you can drive by them, peek in the windows and figure out if it's worth the risk.

As-is properties that might need $50k worth of work or be termite infested is what you have to take into account. I know someone that bought at $167K and it appraised at over $300k!

We used RealtyTrac.com and got nothing out of it. Sure we got the name and address of properties in foreclosure, but HOW does one get the owner that's losing his house to sell it to you? We hired a broker and a real estate attorney to help us. Didn't work. Waste of time and money!

I say go to your courthouse and avoid all the fee based websites. If the owners are still in the property you're fighting an uphill battle!

Answer 2

It is basically no different than buying any home except maybe a little more paperwork. You can find foreclosures via the Internet. Banks and mortgage companies often hire Realtors. Some banks and mortgage companies may try to sell themselves. The web foreclosure sites usually charge a fee to get access to the homes. If serious about a foreclosure, the cost may be worth it. Contact a Realtor. They will have access to any and all area Realtor listings. You may also want to call a few banks and mortgage companies to see if they have any. Once you decide to purchase, the Realtor or bank will take you thru the buying process. The financial requirements to buy a foreclosure will the same as buying any other home. All home closings have a lot of paperwork most of which comes from the bank. Foreclosures have a little more.

Answer 3

Most foreclosed houses are offered at a sheriff or courthouse sale. The financial institution will follow their curiosity within the estate that means the whole thing that's owed to them as their bid. Most of those properties have little or no fairness and the public sale method is extra of a formality of the financial institution assuming possession. The financial institution will then ship the dwelling out for a directory as a REO. Never will you be in a position to expect repayments on the public sale. You typically need to positioned down 10% in 24 hours and pay the stability earlier than the affirmation listening to if you want to comply with, most commonly in two - three weeks. If you buy at public sale you're dependable for any current liens, taxes however you will have to have already got performed your due diligence while discovering the estate to understand whether or not they exist. It might be very complex to get traditional financing on those houses as you haven't any entry to them for any style of inspection or appraisal. Most individuals who purchase those properties pay coins after which refinance after the reality or with no trouble rehab and turn it or create a condominium estate. Its a entire fallacy that you're going to get properties at 50 - seventy five % reduction. Most states is not going to even enable the sale if the bid is lower than sixty six% of the appraised rate or they simply begin the bidding there. What so much individuals do not observe is that almost all of foreclosure don't have any fairness or honestly owe greater than the estate is valued at. If they've fairness the financial institution will paintings with them on refinance fending off foreclosures or they would promote it conventionally and prevent foreclosures. If you're quite short of a deal that may be financed conventionally you need to paintings with the financial institution when they expect possession on the public sale. Research what they've within the estate and make an present that deducts the fees that they're going to need to pay to cozy, preserve and promote the estate. They quite aren't within the truly property industry and if the present is sensible and also you throw in that you're going to finance via them, you might be very amazed at what they'll take.

Answer 4

I think you can get your best bet is a "PRE-forclosure" that way you don't have to deal with the bank you just deal with the Seller directly. I have been on a quest for pre-forclosures and it is silly money. I just write the owner of the home,only after making sure that the house will be worth my purchasing,and send the letter in the mail. I have gotten 5% response back but it's worth it. I got the pre-forclosure list from Realtytrac.com. You do have to pay 40 bucks a month or so but I'll tell ya again It's WORTH IT!!! =0) Good Luck. If you have any other questions go ahead and email me.