Foreclosure question?
Question:
Answer:
As long as the house is mortgageable (the bank won't lend money on a house that is inhabitable) The amount of money down depends on the lender and your credit etc.
If you buy the house at an auction you may be required to have a cashiers check for appx. 10 to 15% depending on your state. Then you have a certain amount of time to get a mortgage commitment.
When buying at an auction find out what the upset price is ( the starting bid amount) just becasue the amount in foreclosure is say 95,000 that doesn't mean that you are paying that, it's a real auction with bids can go higher than you expected.
Trying to find REO's (real estate owned) properties isn't as easy as it seems. Can be done but you'll have to devote A LOT of time to this. Also, get the lis pendens from you county and try contacting the homeowners before the actual foreclosure auction. You can also get this info from your local newspaper under the legal section.
Good Luck !
I don't think you'll have a problem getting a regular mortgage. but what you have to remember is that this the property is owned by a company, not by an individual. The only thing that they want is the money that is owed to them. So, you might be able to get the home at a really great price.
Also, the property is really sold "AS IS". No one will do any repairs if the inspectors find something wrong. It's all on you - except for any termite problems. you won't qualify for a mortgage if there is any termite problem that goes untreated. So make sure that you have disposable money to fix anything yourself.
Be ready for anything, forclosures can be a bumpy ride, but well worth it in the end when you turn a great profit and sell it.
good luck!
Great Idea. Might be hard to get a loan if the property is trashed.
Go to the HUD website and they will have a list of forclosures.Sometimes you can find a good deal..Its a bidding process, so you have to be ready to have your financing in place.Best of luck!
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