Is it true that in order to purchase a foreclosure home you need to pay 10-20% in advance?
Question:
Answer:
At the auction, you need cash or the equivalent, with a 10% cash payment that is at risk if you can't close the deal.
After the auction, when they become lender owned, they're just like any other property as far as financing goes.
You generally need 20% at auction but once the bank or HUD has the home that is not a requirement. You can get the same financing on a foreclosure as you can get on any other house.
To purchase a forclosed property, you should have cash in hand to offer the "forclosee". Otherwise it's more work than it's worth.
yes...at least 10%....goodluck on your purchase..
It depends. Are you buying the home at an foreclosure auction or is the bank selling the property through a realtor.
If it is being sold through auction, the terms are generally a $5,000 to $10,000 certified check at the time of the auction with the balance being paid in 30 days.
If it is being sold through a realtor then you do not need 10% or 20% necessarily. It all depends upon what programs you qualify for. I have provided financing to two people in the last 6 weeks that bought a foreclosed property and they opted for 100% financing.
However, this being said ... if you are trying to bail out a family member, this would be considered a "non-arms length" transaction and will require 20% down payment.
visit www.johnleblanconline.com for more info or if I can be of any more help.
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