Foreclosure in Wichita>Question Details

David Moore, Home Buyer in Mulvane, KS

What is the process of buying a foreclosed home with an FHA loan?

Asked by David Moore, Mulvane, KS Tue Jun 19, 2012

I am currently selling my house and am interested in buying a foreclosed home to live in and fix up at a low cost. I do not have enough equity in my current home to put down 20% and will most likely have to secure an FHA loan.

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Robyn Funk, Broker 316-644-9101’s answer
David,
You have many different options. The best option depends upon the particular property, your personal financials, and other factors. I have closed on foreclosure's with an FHA loan. The buyer agreed to paint or hire someone to paint the bare wood around 2 back windows prior to closing. He did so for the equity he was getting and loved the home. I help Buyer's buy foreclosures and I help seller's as soon as they go into default and as late as when their redemption period ends. Realty One has established relationships with local attorneys who represent the foreclosing banks.We also have a full time researcher at the court house who can get all the research on the home prior to your making an offer. This can save you time & headache if there are unforseen title problems or just give you peace of mind & knowledge to make the best $ offer. Realty One Corp. takes the stress away so that there are no surprises.
Feel free to call me anytime 316-644-9101 or We will discuss all the possibilities and explain all your options, regardless of whether that involves us and our company at all! I am not far from you. We are located in Derby. http://www.realtyonkansas.com

PS~I have a buyer looking to purchase 125k in Mulvane. Is your home on MLS, I'll make sure it gets on the list if it has what they are looking for.
0 votes Thank Flag Link Mon Jun 25, 2012
PS: 203ks only requires 3.5% down payment & I can usually have your closing costs covered along with loan costs & title company charges:)
0 votes Thank Flag Link Tue Jun 19, 2012
A 203k is a harder loan to go thru. I would suggest a 203ks instead. It's cheaper and less troublesome to deal with. Make sure you use an agent who has done both foreclosure purchase combined with 203ks loans. Both require higher levels of expertise. I feature a gentleman on my REAL ESTATE TV show who I actually helped buy a foreclosure home using a 203ks loan. He was able to achieve about $38K in equity in less than 90 days. Call me if you would like me to help achieve such results. 316-550-HOME.
Web Reference: http://WichitasMLS.com
0 votes Thank Flag Link Tue Jun 19, 2012
Use the FHA 203k loan.
That will allow you to borrow the money to fix up the house.
http://www.LaurasGotYourBack.info
Laura@laurachaney.com
785 865 5000
0 votes Thank Flag Link Tue Jun 19, 2012
David - luckily you won't need to put down 20% to obtain a conventional loan. You'll need as little as 5% to qualify for a conventional loan. While it is true that most homes that have gone through the foreclosure process won't qualify for an FHA loan, that is not a constant. Some bank-owned homes are in good enough shape to go FHA. Use a experienced real estate agent to help you with your decision. Good luck!
0 votes Thank Flag Link Tue Jun 19, 2012
The fact that it had been foreclosed is irrelevant. That was the past and is over, now it is owned by someone after the auction, most likely it is now bank owned and for sale by them. Talk to a loan officer or mortgage company and ask if can be sold with a FHA loan. FHA has rules to follow and must pass an inspection and often bank owned homes have trouble with them since no one has been taking care of it many times. Good luck.
0 votes Thank Flag Link Tue Jun 19, 2012
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