Hi Jeff! When buying a foreclosed home, you purchase it from the bank and not the current owner. This is because the bank forecloses on the home in order to mitigate their losses. You can purchase a foreclosure by bidding on the courthouse steps (a very competitive process now) or by placing an offer on a property that is listed on the MLS. You will get a negative response if you contact an owner who is underwater in their home.
To no fault of your own it's a common myth that foreclosed homes sell for less than what they are worth. Regardless if a home sells on the courthouse steps as a foreclosure or a home that's a traditional sale that was listed on the MLS, the home will sell at more or less current market value. Therefore, I recommend to get in touch with a qualified Realtor to help you with your home search. I hope that helps but please contact me if you have any questions.
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Hammer Real Estate Group
cell ph (916) 716-1341... more
Have you considered a HOMEPATH property? http://www.homepath.com The best part of a HOMEPATH home is you can put as little as 5% down (score of 680), or 20% down (with score of 620), AND there is NO mortgage insurance (with 5% down)..
Kinecta Federal Credit Union (a not-for-profit direct lender) is one of few HOMEPATH lenders in the country, with a presence in California.
Hope this helps!
Rene Joseph De Blanco
There is a group in our area that works on property swaps, although I'd have to research how active they are right now. The cleanest way is to get a home equity line of credit on your fix up home, to use as down payment on your new home. Still, there are more questions to ask you to give you the best direction on this one.
For example, are you living in the fix up home or is it rented? On a new purchase, using FHA lending, you need to put down 3%, but even that could be creatively financed.
To solve your problem the answer is not in using your current home as a 'downpayment' without converting equity to cash in some way. But there may be other solutions. I suggest you call to discuss in more detail with myself or one of the other qualified realtors.... more