I want to know the details on how to buy a foreclosure.?


Question:
I know it is easiest to find preforeclosures in the newspaper and are almost always cash transactions. I need to know how to go about completing the deal after the offer is verbally agreed upon. What are the next steps?

Answer:
most foreclosed homes are sold at auction on the county courtsteps on a specific date. The bank states the initial price, and some are like a traditional auction. Ex.. minimum is 100,000. Bidding will start at 100,000 and go until the highest bidder wins. Other states do a closed/ blind /silent bidding. Ex. Minimum of 100,000 you write down how much you're willing to offer above the minimum and if yours is the highest you win.

Unless you have the full amount you're bidding you have to have the loan approval BEFORE you bid. You will not be able to bid on a foreclosure unless the funds are readily available.

If you are looking at a certain house be sure that all the past tax and home owner fees are up to date otherwise those will become your responsibility as well at closing.

If you are buying a forclosed house the Bank has already taken over the house and they are in essance the "seller" you'll have to deal with their rules and regs

Good Luck
Get authorization from the seller that you can talk to the bank to negotiate with them and submit your offer to the bank.
Usually when you show up at those foreclosure auctions, they will tell you all that information, or and hand out sheets with the specifics in detail.
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