How do I purchase a home in foreclosure?
Question:
Answer:
It would depend at what stage of foreclosure the current owner is at:
* pre foreclosure - the best time and place to do a deal with a homeowner, but they are usually in denial and unwilling to believe they have an issue. In those cases, you can probably make up the back payments and go from there. You might also be able to do what is called a "short sale" where for example the borrower owes $100,000, but you offer less than what is owed based on repairs needed, or what the house is truly worth at this point in time.
* foreclosed/auction - You can buy properties for what the lender basically is owed at the county court steps. You will need cash or certified funds to do this and you do need to understand that you may be taking on liens on the property, so do your diligence if possible.
* REO or Real Estate Owned property - property that went to auction and didn't get sold is usually turned over to realtors who specialize in these properties. Just because it is an REO doesn't make it a great deal, but it has the potential to be one.
Hope that helps
FIRST AND FOREMOST... Have An OUTSTANDING Credit or Deacon Score!
GO to your bank and get PRE-QUALIFIED for a Loan, and then YOU will know WHAT YOU CAN AFFORD!
Go to Any Bank, THEY have a House Foreclosure LIST. Search VARIOUS Banks LISTS, and then. GO FOR IT!
Thanks, RR
Proceed with caution. You could end up assuming liens on property. Get help with your first foreclosure purchase so you can learn the business. It'll be worth paying a professional the first time or two. Ask alot of questions!
How to will depend on where things are in the foreclosure process. You also need to have the resources to buy (cash, credit, moxie if you lack cash and credit).
I have provided an overview of the foreclosure process and how to buy from a bank if they are the owner (after the foreclosure auction). The information there should get you started. The topic can fill a book so expect that after reading the write ups you need to spend time at the library or a bookstore.
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