Foreclosure in Naperville>Question Details

Cinnimonbunny, Other/Just Looking in Chicago, IL

When looking to purchase a home that has completed the forclosure process, does the potential buyer have to have all monies upfront?

Asked by Cinnimonbunny, Chicago, IL Wed Jul 18, 2012

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When buying a foreclosure I believe the only added expense would be a survey of the property. Of course, you would need an attorney (I know a great, very inexpensive one) and you would want a home inspection.

Please let me know how I can help, Cinnimonbunny.

Marianne Hofmann, Realtor, Broker, e-PRO
630-664-9472
MarianneHofmann@att.net
0 votes Thank Flag Link Sat Jul 21, 2012
Hello,
Are you planning to finance the loan or pay cash? When purchasing a foreclosure there are added expenses that you normally would not pay when buying a short sale or a seller sale. Contact me and I will gladly go over what is involved when purchasing a foreclosure property.
Kindly,
Judy Keene,
630.776.1590
napervillerealtor@rocketmail.com
0 votes Thank Flag Link Sat Jul 21, 2012
Hello,

I think if I understand correctly, you are looking to buy a home that was in foreclosure and is now bank owned. If that is correct , then it is going to be a regular sale and you will follow the same process as if you were buying normal property.

so you will make an offer , put earnest money down with a preapproval and you will close with a mortgage . Most of the times if you are making an offer on a bank owned property, the bank will require that you have a preapproval

Please don't hesitate to contact us at 630-660-6376 or email us at ridhi.raheja@prospectmtg.com Good Luck !
0 votes Thank Flag Link Wed Jul 18, 2012
The buyer will have to bring the same money to the table in a foreclosure sale as they would a regular sale.

They are typically sold as-is, they don't provide surveys, and they involve a few extra addendums.

The "seller" is the a bank representative so there is no emotional negotiating.

They are often listed at lower prices because the bank wants them sold quickly.

Your extra costs will be the survey and any repairs needed.

If you need me to explain further please feel free to contact me anytime....630-730-4934. I can also provide you with a list of foreclosed homes in the Naperville area.
0 votes Thank Flag Link Wed Jul 18, 2012
Since there are not a lot of forclosures in Naperville there is a lot of competition when they come on the market and many times investors have cash and the lenders will take a cash offer over one that has a mortgage contingency.

Foreclosures are and can be purchased with a mortgage contingency.
0 votes Thank Flag Link Wed Jul 18, 2012
Hey Cinnimonbunny,

thanks for using Trulia.com to get answers to your questions.

as for buying a home that is in foreclosure, the foreclosure process in IL is quite involved and it depending on what step in the process you buy the home determine how to pay for it..

please call me and I will be happy to walk through all of the different steps and how you can buy it. this is free info and without any obligations.. so go ahead pick up the phone and call me now at 630-329-5000.

Thanks,
Inaas Arabi
Option Realty Group
Cell/Text: 630-329-5000
Email: Inaas@hotmail.com
0 votes Thank Flag Link Wed Jul 18, 2012
Foreclosures are sold as is from the bank so you will have to do all the repairs including missing appliances, broken doors, pipes carpeting etc. So typically an investor buys a foreclosure with cash, puts up the money to do the repairs then when the home is in good working order either sells or refinances the home to get their money back. You can get a loan on some foreclosures if they are in good working order or repaired by the bank before selling. There are special loans to get thought your mortgage lender that provide for extra money in the financing.

You have so many options. With the market being so competitive right now foreclosures have not been the great dealer they were in the past has home owners are aggressively pricing their homes and may be a better price.

Make sure your agent is educated on guiding you on all your options and you work with a lender that provides you with all the types of loans available to you today.

Sincerely,
Tamara Schuster
Naperville and West Suburban Real Estate Agent
www/BrokerTamara.com
0 votes Thank Flag Link Wed Jul 18, 2012
Buying a foreclosure property is like buying a home that has a seller...except that it's much more complicated and involves a lot more work.
Buying a foreclosed home can be a way to purchase a residential or investment property. When you buy a foreclosed property, you do not need to pay off the whole purchase at once. While the majority of your sale can be financed through a mortgage, you need to make an initial deposit to secure your purchase.
0 votes Thank Flag Link Wed Jul 18, 2012
I think Darrell covered most of the things...all I will like to add to that is that it also depends if the REO is doing home path financing, where they will finance you to repair the property if need be and that depends on the type of loan you are going to take . You could also be a cash buyer and pay the whole money upfront.
If you are taking a loan you would still require money for closing, inspection and an attorney.

Hope this helps!!
0 votes Thank Flag Link Wed Jul 18, 2012
Hi Cinnimonbunny (cute name),

No, you do not have to have all the money upfront. You can have an FHA loan, which means you have to put down 3.5% of the sales price at closing. If the property needs a lot of work, you can get a loan for the work which would be added to the FHA loan. This is called an FHA 203Ks loan.

Please let me know if I can help you with this. I can be reached at 630-664-9472 or mariannehofmann@att.net.

Marianne Hofmann
Charles Rutenberg Realty
Naperville, IL
Web Reference: http://mariannehofmann.com
0 votes Thank Flag Link Wed Jul 18, 2012
Cinnimonbunny,
If you are buying at auction, yes. If the home is listed with an agent, no.
0 votes Thank Flag Link Wed Jul 18, 2012
If a home has completed the foreclosure process, this is referred to as an REO. An REO home can be procured with cash or financed like any other home. The key is that the condition dictates the type of financing you will be able to obtain - banks will not typically make any repairs on an REO home. Since these are typically sold as-is, if the condition is not habitable or needs lender required repairs, an FHA or VA loan will be unlikely. Also, if you are not going to occupy, that changes your financing options also.
0 votes Thank Flag Link Wed Jul 18, 2012
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