Foreclosure in Buffalo>Question Details

Amanda Bauml…, Home Buyer in Buffalo, NY

How much down payment is required to purchase a foreclosed home and what website could we use to begin to look at these houses.?

Asked by Amanda Baumler, Buffalo, NY Tue Feb 26, 2013

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Amanda, in most foreclosures you are going to want to have a substantial downpayment of get pre-approved for an FHA 203k rehab loan, which you can have as little as 3.5% down but requires significant work, but can be done.

locally foreclosures HUD and most others list with an Mulitple listing broker when they are ready to be sold, so they will show up on what we call local IDX websites, bottom line most local brokers will have them on their website, my site c21jerry.com participates as an IDX and has those listings also you can go on Hudhomestore.com for HUD listings specifically, to buy one you need a approved HUD vendore of which my firm is one,

Any other questions do not hesistate to ask, Jon Appleby listed below is an excellent mortgage broker who I recommend often, and would be an excellent source for a pre-approval, feel free to call me if you have additional questions.
0 votes Thank Flag Link Tue Feb 26, 2013
The down payment will vary depending on your own qualifications as well as the type of home you are looking at. When purchasing a foreclosure the other aspect that needs to be taken into consideration is how quick the seller will want you to close. The more detailed your preapproval from a lender is, the easier it will be to successfully close on a foreclosed home contract.

Being organized and having all your documents readily available prior to looking will save you a tremendous amount of headaches and aggravation as you begin your search.
0 votes Thank Flag Link Tue Feb 26, 2013
Since most do end up getting listed by a broker consider working with an agent of your own. The downpayment will depend on the type of loan you qualify for; be aware that a mortgage pre-approval letter is required in order to determine your price range and for any offers to be taken seriously.
0 votes Thank Flag Link Tue Feb 26, 2013
Once a house goes through the foreclosure process it is most often purchased by the bank that had the loan. it is no longer a foreclosure but a bank owned or REO home. Once the bank gets around to listing it for sale, which can be from several months to a year, they are listed in the local MLS system. Finding a local Realtor is helpful since these homes can quickly fly off the shelf. They will get here and on the other dozens of websites like realtor.com and zillow in a day or two from being listed so you can see them here and there and everywhere. The problem is real buyers will have their agents send them these listings asap so by the time you see them here they could be under contract already.

As far as down payments those depend on the type of loan you get. You should go speak with a couple lenders to get familiar with the types available and what you qualify for, you need to include a lender letter with most bank owned offers to show you have spoken with a lender.
0 votes Thank Flag Link Tue Feb 26, 2013
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