How do I go about buying a house that is going into foreclosure?
Question:
Answer:
Foreclosure could mean that someone is not paying their mortgage and the bank takes the property back, or it could mean that an owner decides to abandon a property they own outright, but no longer want to pay taxes.
This varies from state to state, but usually the county or the municipality will have a list of properties that are delinquent in paying taxes. In NY after three years, the county puts these properties up for auction on what's known as a "Quit Claim" Deed. It means that you are responsible for knowing the history of previous owners, any of whom could come back later and challenge your ownership. If you are the winning bidder, you have to pay a 10 percent deposit right away and you have 30 or 60 days to pay the rest.
If the house is in foreclosure and the bank owns the property, then you have to negotiate with the bank's representatives. Depending upon how long the house has been in foreclosure, the bank may be willing to sell to you at an attractive price, just to be relieved of the burden.
This may be different in other states.
YOU MUST LOOK FOR THE BROKER FIRST AND PURCHASE FROM THE BROKER.
I HAVE BOUGHT MANY FORECLOSURES IN NY AND THAT'S NOT HOW IT WORK.
FIRST ARE YOU BUYING THE HOUSE AT AUCTION OR BEFORE AUCTION
AT AUCTION YOU NEED AT LEAST 10% BY CERF CHECK AND REST WITHIN 30 DAYS SOME STATES GIVE THE OLD HOMEOWNER A CHANCE TO BUY IT BACK FOR 30 DAYS. IF YOU ARE BUYING BEFORE AUCTION YOU NEED TO DO A TITLE SEARCH TO CHECK FOR ALL LIENS AND JUDGMENTS TO MAKE SURE THE HOUSE IS FREE AND CLEAR. YOU DO NOT NEED A REAL E BROKER(FOR WHAT!!)YOU MAY NEED A LAWYER. ANY QUESTIONS PLEASE EMAIL AT JOHNG@OLDMERCHANTS.COM I AM A SR LOAN MANGER THERE IF YOU NEED A MORTGAGE I CAN HELP.I COVER MOST OF THE US
100% in th eform of cashier's check within one hour of the auction in Michigan. Then you stuck evicting the prior owner and praying they don't trash the place. Generally a bad idea unless you are a assest recovery professional.
More Related Questions & Answers...