Foreclosure in Rockford?

Question:

My husband and I are looking to find a home. Our lease on the apartment we have now will be up soon. We would like to have a house instead of an apartment. Neither one of us can get a loan so we were looking at foreclosures. Can anyone explain to me what exactly a foreclosure is? He says that on a lot of foreclosure properties whoever buys it will just take over the loan from the bank that the previous owner couldn't pay. However; a lot of places I look state that we would have to get another loan. Can someone help? Will we be making monthly payments on the previous loan or do we get one of our own?

Answer:
If you can't get a loan, you won't be buying a foreclosure in the traditional sense; they requre payment just like a regular purchace. You might be able to negotiate to take over a loan; but you have to be credit worthy for a loan to do that. You seem to be looking to assume a mortgage; and that is a different issue; those properties will still be looking at your creditworthiness and are advertised that way; or a property where the owner is carrying the loan himself; they are more able to work with people who can't arrange traditional loans.

Start talking to a realtor; they might be able to help.

Foreclosure Properties you still need to have a loan for the amount of the purchase or you can pay with cash, cashiers check. Your best bet is sitting down with your bank and actually seeing what you qualify for. I think what you are looking for is called "WITH OPTION TO BUY".

If you are not sufficiently creditworthy to get a conventional loan, do not expect to be allowed to assume another loan. In general, foreclosures are sold to the highest bidder for the property and are generally marketed through real estate firms.

Most foreclosures these days are actually encumbered to a mortgage(s) which exceed the value of the property being foreclosed. I suppose some lender might allow you to assume such a loan, since they would have another sucker on the line to continue making payments on a property for more than it is worth.

I am constantly amazed at the interest in purchasing foreclosed properties. They are simply NOT the 'deals' which many claim in their advertising. You are going to pay market value for such a property.

Foreclosure in Rockford?

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