Yelena, Home Buyer in Brooklyn, NY

How does a foreclosure property work?

Asked by Yelena, Brooklyn, NY Tue Apr 23, 2013

I am thinking of looking into foreclosure properties, what is the process for purchasing such properties and is it hard to get financing for them?
Thank you.

Help the community by answering this question:


You always give your highest and best offer as there is typically multiple offers on foreclosure properties. I can explain every step to you. Please call me at 305.606.8222.
0 votes Thank Flag Link Wed Apr 24, 2013
Hi Yelena,

I love working with foreclosures - it requires knowing the rules and being quick to analyze/make your decision. There is little flexibility in terms of how the contract/addenda are written by the foreclosure seller. So, you want to make sure you read the contract carefully before you sign it.

You can get pretty good deals via foreclosure transactions.

Financing is not complex when it is Homepath or Homesteps foreclosures.
Other types of foreclosures will be subject to appraisal, and they have to have necessary appliances in the kitchen (which many of them don't have the appliances), and the condo questionnaire/condo financials (if buying a condo) should be satisfactory to bank's strict underwriters...

It's easier to buy a house or a townhome then a condo, when getting financing.

For more, please contact below

Irina Karan
Beachfront Realty, Inc.
0 votes Thank Flag Link Tue Apr 23, 2013
Hi Yelena,

A foreclosure property works almost as a regular real estate transaction. The majority of the REO's the bank is willing to finance to the new owner, they have a Loan Officer that you can contact for a free pre-approval.
If you qualify You can purchase a single family home with only 3.5% (FHA) or a condo with 30%.
Please call me, should you have more questions.
Gladis Henriquez
Optimar Int Realty
0 votes Thank Flag Link Tue Apr 23, 2013
Please call me at 305.606.8222 and I'll be happy to assist you in guiding you for a foreclosure property purchase. I've done quite a lot of them. I look forward to hearing back from you.
0 votes Thank Flag Link Tue Apr 23, 2013
Relatively easy. Find a local experienced Realtor to guide you. The next thing is to get a loan pre-qualification from a local lender / financial institution. Once you have the pre-qual your agent will take you around and show you homes. They will write the offer for you and submit it with the pre-qual and proof of funds. If the offer gets accepted you will have 30 to 45 days to close, depending on the type of loan. Title will make sure and warranty there are no pass liens or other debts in the property before closing.

Keep in mind that depending on the market you are in you will likely need to offer above the asking price to have any chance of getting an offer accepted, and there will be competition from other buyers. This is normal because we have began a sellers market again. Was this answer helpful? If so please click on the "green thumbs up" or the "best answer".

Tony Vega
Antonelli Realty
0 votes Thank Flag Link Tue Apr 23, 2013
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