Foreclosure in Arlington>Question Details

Kevin Goodpa…, Other/Just Looking in ocala or jacksonville...

What is involved in buying a home that is in foreclosure or pre forclosure?

Asked by Kevin Goodpaster, ocala or jacksonville area Tue Mar 18, 2008

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Susan J. Ball’s answer
Hi, Kevin! That's a questions that many prospective buyers are asking these days. Pre-foreclosure is sometimes called "short sale," too. In this case, the property owner is trying to sell for less than they currently owe their lender. Negotiating a purchase like this requires agreement to your offered price BY THE LENDER, not by the seller. So, the price you may see on the MLS or Internet may be a good "guestimate" by the seller or their real estate professional of a sales price, but it is not necessarily what the LENDER will accept. Work with a real estate professional that can do the background investigation on what the current liens are on the property, current market value, and the appropriate offer. A property that has already been forclosed is owned by the bank and can be listed in the MLS or on the Internet as "corporate owned" or "bank owned." These negotiations are much quicker than short sales and are usually priced better. Banks do not want to own real estate. You must have cash or be totally approved for funding. Most homes are sold "as is" with right to inspect. Thorough inspection of the property by a professional is recommended and you may wish to consider purchasing a home warranty as well. Be sure to have your real estate professional and the title company or attorney investigate liens and assessments and have those cleared before you take title to the property.

Hope that this overview to your questions has been helpful!

All the best,
Susan J. Ball, CIPS
http://www.beachballproperties.com
1 vote Thank Flag Link Tue Mar 18, 2008
I answered a similiar question to yours and have cut and pasted it here for you.
Regarding foreclosures. I went into escrow yesterday 03/17 on a foreclosure. We were up against 5 other offers. I am seeing banks pricing homes purposely to get multiple offers. You should always treat an offer on a foreclosure as a normal sale. Ask for everything you would ask for on a normal sale. We actually got termite repair, closing costs, one yr home warranty and prepaids for our FHA Loan. This was with countrywide (Bank of America). It also depends on the buyer, your client, how motivated they are? is it the house they really really really want. I would normally start low even if is priced to sell. Always ask the listing agent how many offers are you up against. A home in Anaheim went on the market as a foreclosure the same day it had 11 offers on it. Another listed for $289,900 in Corona sold in the high 3's. Give your clients what sold in the last three months in that tract, they will judge from there what to expect.
0 votes Thank Flag Link Tue Mar 18, 2008
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