Foreclosure in 84121>Question Details

Melanie Newby, Home Buyer in Salt Lake City, UT

Forclosure buying

Asked by Melanie Newby, Salt Lake City, UT Mon Feb 10, 2014

How does buying a forclosure work? Do you have to have cash or can you buy it with a home loan from a bank?

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Answers

2
Hello Melanie,

I am assuming here that you mean buying a foreclosure at auction.

Here in Utah the foreclosure auction process very different from some states.

I can explain this in great detail if needed. Just give me a call.

Here is a truncated explanation.

Basically the auction time/location is advertised via public notice. The trustee's office should be called in advance to ensure the auction is still set (not postponed from the notice date and time), also the policies of each trustee are different, but usually the winning bidder will need to provide a check between $5,000 & $20,000 immediately after the auction is called and the rest of the funds to be delivered by noon the next day. The property will then be recorded with the county in your name or your LLC's name. I have never heard of anyone using a traditional mortgage to buy a foreclosure at auction.

If you meant buying a foreclosed home from the foreclosing bank "AFTER" foreclosure, then yes, many buyers are able to use traditional mortgage options, but there are other considerations you will want to talk to your REALTORĀ® about if you want to succeed in this realm of real estate.

Finally, there are Government Homes that have a separate bidding structure, with these you can also use traditional mortgage options. And as with the Bank-Owned or R.E.O. inventory you will want to work with a broker who knows the pitfalls to avoid in this category of home shopping.

Again, I would be happy to discuss these possibilities with you further if you need additional help.

You can search all of the states REO, HUD & Preforeclosure inventory on my site below.

Thank you for using Trulia Q & A., I hope you have found this information helpful.

Best of luck in your search! -Kris

Kristopher Furrow, REALTORĀ®
-"AB" Associate Broker, "CRS" Certified Residential Specialist
Windermere Real Estate - Utah - Salt Lake City - Park City
Kristopher's Direct Line: 801.999.8679
Office Help Now Line: 801.485.3151
Email: kris@nowshowingutah.com
0 votes Thank Flag Link Tue Feb 11, 2014
Pretty much the same as a privately owned home.
You can finance the purchase of a foreclosure.
0 votes Thank Flag Link Mon Feb 10, 2014
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