When buying a foreclosure house? PLEASE HELP?
Question:
Answer:
For foreclosure sales on the courthouse steps, you typically must have 100% of the purchase price in certified funds at the time of sale. For REO properties, it is possible to get a loan either as a traditional loan or a rehab loan - depending on the condition of the property. http://www.foreclosure.com
is a good resource, but they charge for their lists. Try http://www.emailforeclosures.com...
for a totally free service - not a free trial like the others.
You can do it both ways.
If you are going to get a loan you need to sign a contract subject to your loan approval. I would have a prequal letter.
contracts that require finance approval are less attractive than cash with certified funds. You can only be under contract with one party. So if a deal falls apart it wastes there time.
But the purchase price paid may be there most important agenda in a buyers market. good luck
If this is at a foreclosure sale, in general, you will need a certified check at the sale for 10% and the remainder payable in about 10 to 30 days. Where and how you get the remainder is up to you. It's usually difficult to impossible to get a bank mortgage that quickly so you must have access to private funds, savings, relative's money, etc, to do the deal. After that you can refinance with a bank for a conventional mortgage and pay back the private money.
If you are planning to bid on a foreclosed property sale, the requirement is that you have a cashier,s check, money order, or cash and be prepared to pay in full. There are few exceptions, so a loan would do you no good what so ever.
The lender wants full price for the mortgage that is owed, plus any and all fees they had to pay to collect this loan.
That method of getting to the bid part is more like getting in on the back end of the of a foreclosure.
Now there is a way you can still make an offer on the property if it does not sell. Find out at the auction who actually own the property. Get the address and as much information as you can about the lender to include telephone numbers. They will also tell you the minimum bid which is normally the mortgage owed plus any fees and other cost they incurred attemting to collect this debt.
Once you have found out the minimum bid price that was not met of for some reason the foreclosure did not sell.
Write a letter to the lender, with a check for at least 10% of the minimum bid indicating you are interested in the property. Tell them you will need about 14 business days to get financing if your offer is accepted. You might also tell them you will accept the property in a as is condition.
You might also send any pictures you can take pointing out any things that might be in need of repair. Also the cost of the posible repairs.
Wait about 3-4 days, then call the foreclosure department about your offer. Ask if they got your offer? Don't settle for the low level telephone person that answer the telephone, get a supervisor that can tell you if the offer is acceptable or not. The person that answer the phone will give you the policy of the company. That you are not intrested in. You are interested in knowing if your offer will be accepted and when you can expect an answer.
Be very persistant, you will probably not doing business with them again, if you do you would have established, the fact that you are very interested in the property and will not take no from the first 3-4 guys that answer the phone.
Ihave had limited success in this manner. probably you will want to get in on the front end of the foreclosure business until you have enough cash to bid at the auction sale.
I suggest you purchase a few books about foreclosure and flipping properties at your favorite book store or library.
You might also purchase one of the TV guru's programs offered by them. This will give you some necessary forms that you might need for legal purposes and possible offers on the property. They will also give you scripts to use in your dealings with the clients as well as the dollar amount necessary to earn money and be successful in this field.
I hope this has been of some use to you, good luck
"FIGHT ON"
Ya, normally you can get a loan to bid on a foreclosure-- assuming you are getting it at auction (?). The only problem is the time constraint. If need more time or if you don't find the financing you could always look into buying a foreclosure that doesn't get sold at auction or an REO. The bank may finance it for you and you may get a good rate to take it off their hands.
Here's a good site to check out" http://www.foreclosure.com
Good Luck
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