How can I get a Foreclosure Home with no money down?
Question:
I have done just that very thing before. I saw a "For Sale" sign in a yard (was being sold by a local bank according to the sign) and I called the number on the sign to ask the price. Then, I contacted a real estate agent and she negotiated a lower price based upon the home inspection (there were a few problems with the house but nothing major). The realtor wuz the one who told me the home had been foreclosed on. The home inspection cost about $100 (this was in 1990). The bank officer and I agreed upon a price and he did a credit check on me (cost $25). Then, a couple of dayz later he called me and I went in to sign the closing papers in his office. That waz the best house (and deal) I have ever been a part of. Nice home at really cheap price (banker just wanted to break-even). The entire process took about 2 weeks and cost me only $125. I got lucky when I spotted the house because we had just lived in the area a couple of weeks. You may need to contact a Realtor or maybe go to city hall in your area and get a list of foreclosed homes. In large cities the local newspaper will usually have a long list of VA (HUD)foreclosed homes for sale in every Sunday paper. My father has purchased several of these HUD homes in his lifetime. The price is low and the Federal Government gives you free money to repair the house if the home inspection reveals any problems with the house. David.
Sometimes, this is not a rule of thumb, but just sometimes, a banker will be tired of handling the same house and want to, excuse the term "Dump it"
It the old rule, if you don;t ask, you won't know. So, it doesn't hurt to go in and ask the banker and smile, it helps, tell him your story how your going to fix it up, paint it, make repairs. If he thinks your going to be an asset and make his property better, and it's a pain to him now, he might go for it. Remember to smile, if your in a small rural area where everyone knows everyone, it may work.
Foreclosure homes are purchased with the same type of financing used to purchase a home NOT in foreclosure. There are no easings of credit requirements in purchasing such a property. The bank has foreclosed because it wants its money. It is not going to take on another owner which might result in the same scenario as did the previous owner.
I don't think you'll be able to buy a foreclosed home with no money down, I think you should look at other homes that aren't bank owned. Banks tend to be very pick about who's buying their homes. We're actually closing on a bank owned home at end of July. We had to give a $1,000 bank certified check as a deposit upfront. Usually you give sellers a $500 personal check and then another $500 personal check at the closing. But banks want to know you're serious and are going to want big money up front.
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