I want to buy a house in foreclosure. How does the process work?
Question:
There are 5 stages of foreclosure. You need to contact the bank that hold the loan and find out. I dont believe that you can purchase prior to stage 3, notice of action/intent.
Just contact the bank and have a loan arranged for the amount owed on the Loan. Banks cant sell the home for more than what is owed, regardless of apprasal.
I think you need to give more details, but try to figure out all the details (taxes, insurance, maintenance fees, etc) and decide what you are willing to do. If it all adds up and you want to procede, most people will not do the transaction without a reputable attorney. For me, when we thought we (the buyer and seller) had a deal, my attorney made a deal with me that he takes like 20% of his fee to start, and only if the deal went through the rest of the money.
It really depends on who's doing the foreclosure. Most of the time banks/mortgage companies will hire law firms to handle the foreclosure process. I work for a law firm that does this and the main issue is making sure no liens, prior mortgages, etc. are attached to the property because they may not be cleared just because of the foreclosure. You need to research any property you are interested in buying thru foreclosure. You can do title searches that will show if there are things attached to the property. Also, most firms consider foreclosures as cash sales - you have a short amount of time to provide funds (not the general time frame when you are closing on a loan) and once you send the funds and get the deed you are stuck with the property and everything that goes along with. Sometimes the people living there prior to the foreclosure may not leave and the person who bought the property is responsible for getting them out. It's not as beneficial as you might think, that is if you don't do your research first.
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