What should I know about buying a foreclosure?
Question:
Thanks
Answer:
You don't say what State you are in or looking to buy in.
I'm guessing you are talking about bidding on the house at the foreclosure sale.
Foreclosure sales are published in the legal notice of Newspaper
1. Bidding- There are 3 types of bids
Total Debt- This the total amount due on the house including fees/cost etc.
Specified Bid- A percentage of the Total Debt Bid
Range Bid (if applicable in that state)- Lender has the chance to place mulitple bids
2. Contact the attorney who is handling the foreclosure sale- don't go thru the Sheriff- Ask what if there is an opening bid available yet- sometimes they don't get them from the lender until the day of the sale. Ask their sale requirments- if cashier's check is due that day or if they have " X" amount of days.
Remember they are very limited on what they can release to you. Be nice- they are not always obligated to release even the bid to you.
3. If it's money is due at the time of the sale go get a cashier's check for the highest amount you want to pay.
Or atleast be have a letter of credit from our back
4. Bidding is pretty fast
5. Not all states have redemption rights. If not you are the owner when the Deed is recorded.
6. You will be responsible for eviction
Again the title issues vary state by state.
2nd mortgages and other liens may be wiped out at the time of sale
You may be responsible for back taxes, some lenders will pay them and include them in their bid
Just remember you are buying as is.
call your county's sheriff sale dept or you may be able to find a listing online of the homes, problem is here in ohio, you cannot go inside and inspect the home before purchasing it, if you end up getting the home way below market value, it may be okay, but if there is enuf damage and repairs that need to be done to the home and the price isnt low enuf to make a profit it may not be good
there can also be blemishes on the title that for one reason or another don't show up at the time of foreclosure. you will be responsible for these. defaulted borrowers also have a right of redemption and can cure the foreclosure after the foreclosure sale is complete by repaying the loan and various costs/fees. I think that in some states, this right extend for as long as 20 years. If you want to re-sell during this time, you will sell below market.
you need to contact a local realtor. they can show you what properties are already on the market, and keep you informed as to whatwhen properties come on the market.
this is a great resource if you are serious about starting this
http://andycaine.fedhomes.hop.clickbank.
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