http://www.biggerpockets.com/foreclosure-process.html ....also has the foreclosure laws for each state..
Hope these help you, Dunes
The procedure, at least to begin, is the same as a home that isn't in foreclosure. If the Seller is still owner of record, you will make an offer and come to an agreement with the Seller.
The rub comes if it's in foreclosure already, or if the price you've negotiated doesn't pay the mortgage the Seller owes. If the latter is the case, it's what's called a "short sale". If the former is the case, still not a huge deal, it's similar to the short sale in that it will require bank approval, but may also require legal work from the closing attorney.
The bottom line is, if it's in foreclosure, or the sale is going to be a short sale, it will require participation and approval from the bank. This means there are more persons from whom you have to get approval, and the process is a bit longer. It doesn't mean it can't be done, and yes, I would strongly suggest you work with an EXPERIENCED REALTOR through this process. There can be a lot of unexpected twists and turns, such as second mortgages, junior liens, unpaid assessments and or taxes in arrears, through which an experienced broker can help you navigate..
Hope this helps and feel free to contact me at firstname.lastname@example.org.
Marty Jones, CRS, CRB
If it is already foreclosed, then you make an offer of a price based on value and condition, and the bank either accepts, rejects, or counters. Foreclosures are sold as-is, and usually have addendum's (some addendum's are longer then the contracts). Donald wasn't completely accurate in his statement "Realtors who are making a bid on behave of the buyer on a foreclosed property must be registered with the government to do so" That only applies to HUD foreclosures. The majority of foreclosures in the Triangle Market are not HUD foreclosures, and any Realtor can assist you in purchasing those without being a HUD registered agent.
If it is in the process of being foreclosed, you make an offer to the owner. A short sale comes into play when the owner owes more for the house then it is currently worth. With the Triangle having had steady, slow appreciation for the most part, this isn't as common as in some states. If the owner does owe more then the house is worth, the bank has to approve the offer. This is a slow process, and can take 6 to 8 weeks to close on the house.
Let me know if you have additional questions.
The simple answer is yes, I am working with a seller and a buyer on a short sale right now, which is just before the foreclosure starts, we are on week 9, so it is sometimes a long process. I would not recommend going it alone, always get yourself a Realtor , so you have representation.
Feel free to drop me a note at email@example.com or a call at 919-389-8702. Happy House Hunting!
The buyer needs to make sure that the Realtor that they hire is experineced enough to assist them with the purchase. Realtors who are making a bid on behave of the buyer on a forclosed property must be registered with the government to do so. Check with you agent to see if they and their broker are HUD approved.
You want to find someone you can trust and who has the experience to assist you in your due diligence and who will help you to minimize the risks involved whenever you are buying a property that will be sold â€œAs-Isâ€ You do not want to work with someone who isnâ€™t familiar with the process and hasnâ€™t done this numerous times.
If I can be of any assistance to you, please let me know.