Foreclosure in Burlington>Question Details

Mohammad Ull…, Home Buyer in 08048

how can i buy a foreclosure property?

Asked by Mohammad Ullah, 08048 Tue Dec 29, 2009

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Another site you can look up foreclosures without risk of fees or costs is here: http://www.newjerseyhud.com/dyn/0/i/njhud/h/njshell//NJ/GLOU…
The site is also full of great information

This site is completely free.

If I can be of any assistance please contact me.

Larry Sarlo
Weichert Realtors
609-868-1171
lsarlo@comcast.net
0 votes Thank Flag Link Tue Dec 29, 2009
Foreclosures can be tough.

These are not what people think about properties that you can walk right into and live. Some, very rare properties are, most are not. These properties have been either abandoned by their current owners and have been vacant for a while and some, the owners still live there and have taken their frustrations out on the property. But again, all properties are not like this. You should view these properties with this in mind.. keeping an open mind to what "can be" with a little work.

The steps are the same as any ther propertiy.. go see it.. get a CMA and all the comps for the past few years.. see what is going on in the area and then make your offer based on that. Sometimes Banks will say.. we will only accept... blah, blah. If it comes to auction.. you may purchase the house and receive a sheriffs deed, that does not mean that the property is lein free. Due diligence is the key to all short sale / foreclosure properties.

Risk.. well, these properties are usually sold "as-is" so there is some risk there..
How do you protect yourself, well, due diligence.. meaning look into the property, learn about the neighborhood.. the sales, the expired, the withdraw.. cover your bases the best you can.

Look for someone that is willing to work with you and help you find that property when you are met with adversity, turn your the cheek and move forward in your quest. Find an agent that understands the process and can help you achieve your goals. There is no reason not to look at other properties as there may be a good buy available also.

Foreclosures are not for the faint of heart.. but if you are diligent and the right amount of research is done .. you may find a diamond in the rough.
1 vote Thank Flag Link Thu Dec 31, 2009
Answering this question leads to another question, what do you want the property for? Having worked with this type of transaction as well as having my SFR certification I know it is a complicated process that may or may not lead to a good investment. Looking at properties that are listed for short sales maybe a better place to begin. In today's market often it is better to find a property that you want and negotiate the price. Unlike foreclosure homes the deed is clear and you can see the property and have it professionally inspected .
1 vote Thank Flag Link Wed Dec 30, 2009
Hi Mohammed -

One more thing, instead of tagents posting all kinds of cut and pasted information about forclosure and short sales I suggest you check out some goverment websites:

http://portal.hud.gov/portal/page/portal/HUD/topics/avoiding…

http://hud.gov/offices/hsg/sfh/nsc/faqpfs.cfm

It can get confusing and you do not know who to trust and all kinds of stuff. Be smart, look at goverment sites and learn form there, there look for an agent that has expereince. Be leery of the realty trac and anyone that wants to charge you to find a short sale or foreclosure.
1 vote Thank Flag Link Tue Dec 29, 2009
Mr. Ullah.
In addition to the answers below I offer this information as some background to foreclosures:

In New Jersey, the lender goes to court in a "judicial foreclosure" proceeding where the court must issue a final judgment of foreclosure. The property is then sold as part of a publicly noticed sale (auction). The Superior court has jurisdiction on foreclosures. A complaint is filed in the court by a "lis pendens". (Its Latin but I forget what it means). But what a lis pendens is, is a recorded document that provides public notice that the property is being foreclosed upon. In NJ it takes about 8 months from the filing of the complaint to reach the actual auction. There's 3 stages at which foreclosure investors can acquire a property: pre-foreclosure, auction, and post-auction (REO aka bank-owned).



Here are some challenges with buying foreclosures:


Most foreclosed properties are sold at auctions where the buyers never have access to the inside of the home, so you don't know exactly what you are getting. The potential hazards here are obvious - from a kitchen with no appliances to a leaking oil tank.

The "good deals" are generally scooped up by the dozens by professional investors and banks. The starting bid is typically the amount of the loan remaining, so you need to find a house with equity to get a "good deal".
You generally need cash deposit at the auction. You can use your own lender for the balance which is due in a short period (few days to a couple weeks), in which event you should obtain a pre-approval letter (not a pre-qualification) to present on auction day. However, if you choose your own lender, there is no financing contingency. Failure to achieve loan approval and close the transaction within the specified time frame may result in the forfeiture of the buyer's deposit in accordance with your purchase contract.

The lower-risk approach is pre-foreclosures, where you contact homeowners directly who are in default. The competition for this is even stiffer than auctions, and again the professional investor has a huge advantage here, not to mention you're dealing directly with people who are about to lose their home and negotiating a good deal can be tough unless your cold-blooded.
Foreclosed homes at auctions are not necessarily delivered with a clear title - any liens or other mortgages on the property may fall on you, including utility bills and unpaid property taxes It would be cost prohibitive to do title searches on every house you hoped to bid on, so you can work with a title co. to do quick searches, but you're on your own to sort through the paperwork. One positive note - typically second mortgages are wiped out when the original lender forecloses.

Just because the home is in foreclosure, doesn't mean its vacated - you may have to go through the eviction process to get the default borrower out of your house.
"Right of Redemption".... it means the borrower can buy back his house for the amount of the loan even after you buy it in auction. NJ is not too bad, its only 10 days - some states have a much longer period.
The lowest risk stage is buying REO's - "Real Estate Owned" by banks. These are typically listed on the MLS, so we'll see these anyway. Upside is the bank will have already confirmed clear title, downside is you're not going to get much of a deal and you're still buying "as-is" properties and many do not turn on utilities for home inspections.


I suggest checking out foreclosure.com for some more info and tools. Best of Luck and let me know if I can be of any further assistance.
Joe

Joseph Mancini
AVALAR Atlantic Properties
mobile: 856.275.6433
fax: 856.879.2024
email: Joe@landmanNJ.com
1 vote Thank Flag Link Tue Dec 29, 2009
Hi Mohammed -

Where are you looking to purchase a short sale property? And then, have you found a Realtor? You should look for a Realtor that has knowledge of short sale properties and has listed and or sold a few properties.

Many agents claim to have the knowledge of short sales, but are really "winging it" and hope for he best.
I have closed many short sale properties and have a SFR (Short Sale Forclosure Resource) Certification. This is one of the only cerifications approved by NAR ( National Association of Realtors)

Let me know where you are looking, price range! Call or email for more information!

John Sacktig
Broker / Manager SFR
Orange Key Realty
Office: 732-863-6969
Cell: 732-213-1409

JSacktig@orangekeyrealty.com
1 vote Thank Flag Link Tue Dec 29, 2009
Mohammad,

Why bother? You only asking for a migraine. There are no "good deals" in the foreclosure arena unless you are a professional who does it for a living. Even then it's a dice roll with many losses mixed in with the gains. Read Joe Mancini's post below.

Just find a real house to buy and buy it. So many people are looking for some kind of illusion - an incredible steal. It does not exist.

Good luck!

-Marc

Marc Paolella
Relocation Director
Member: Worldwide ERC
Member: New Jersey MLS, Garden State MLS, Hudson County MLS
Licensed Realtor NJ
Licensed Appraiser NJ & NY
Century 21 Joe Tekula Realtors
Agent of the Year 2008
Agent of the Year 2009
Owner: Sands Appraisal Service, Inc.
Phone (direct): (973) 584-4235
Search the Garden State MLS: http://www.marcpaolella.com/SearchMLS
0 votes Thank Flag Link Wed Dec 30, 2009
Your lender approval will govern the type of foreclosure you can purchase. Contact an agent who will represent you through closing .

Keep in mind you can submit many sales offers without a response from bank, not all foreclosures are below market value

National Featured Realtor and Consultant, Texas Mortgage Loan Officer, Credit Repair Lecturer
Follow me on Twitter: http://twitter.com/Lynn911
Lynn911

http://www.lynn911.com
0 votes Thank Flag Link Wed Dec 30, 2009
Hello Mohammad,
Congratulations on your decision to buy a home. If it is your first home there are several programs you may qualify for and if you are a move up buyer the government also has some progras available but there are restrictions regarding income and ownership. I will be happy to meet with you and provide you with a list of homes available and help you through the mortgage pre-approval process you will need to get your mortgage. Unless of course you are buying the property cash.
Call or email me with your criteria so I can start helping you at your convenience or visit my website anytime you like to see all the homes in the areas you select.
Best Regards,
Ines
Web Reference: http://www.inesdelacruz.com
0 votes Thank Flag Link Tue Dec 29, 2009
Mohammad,

Buying a foreclosure property is a lot like making a regular purchase. The best way to begin is by contacting a local real estate professional. They will be able to identify possibilities in your area and price range as well as make the offer and guide you through the process.

Good luck
The Eckler Team
0 votes Thank Flag Link Tue Dec 29, 2009
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