Foreclosure in Garden City>Question Details

Jstemberger, Home Buyer in Garden City, NY

how do you go about buying a foreclosed home ?

Asked by Jstemberger, Garden City, NY Thu May 20, 2010

Looking to understand the process of buying foreclosed property (homes),

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Good afternoon Jstemberger,

I've been helping First Time Buyers for 23 years as a mortgage professional and I will tell you what I have always told my clients here in New York: If you are a First Time Buyer, steer clear of foreclosures and short sales.

Foreclosures are someone else's headache. The home probably has not been well-maintained and you're a First Time Buyer adjusting to paying a mortgage. Do you really want to walk in the door to someone else's deferred maintenance that YOU will have to pay for? Also, if you're thinking there are deals to be had in terms of lower prices, mostly those "deals" go to professional investors who can pay cash, negotiate hard with a Lender, and close fast.

For Short Sales, my attitude of late is that First Time Buyers should steer clear. Short Sales tend to be a better deal for the homeowner than for the Buyer. You'll wait MONTHS for the homeowner's Lender to approve the short sale; maybe as long as Six or Seven Months. Meanwhile, you're stuck in a contract to buy that home. I closed a short sale recently with a Buyer who, after seven months said this at the closing table, "I don't even want this house anymore."

And he didn't even get the "deal" on price he thought he was getting! The house appraised for only slightly more than he paid for it at the short sale price. He walked into this deal thinking he was buying a home for $100,000 less than it's value. In the end that wasn't the case.

There are plenty of motivated Sellers with their homes listed on your local MLS. Go find a good Local Mortgage Banker, get prequalified, then find a great, experienced Realtor, and buy the home you want at the price you're willing to pay.

Trevor Curran
NMLS #40140
Mobile: 516-582-9181
Office: 516-829-2900
Fax: 516-829-2944
PowerHouse Solutions, Inc.
1010 Northern Blvd. Suite 234
Great Neck NY 11021
Licensed Mortgage Banker – NYS Dept. of Financial Services

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0 votes Thank Flag Link Thu Apr 25, 2013
I could help you if you decide to buy a short sale in for your buying list.
0 votes Thank Flag Link Sat May 22, 2010
Hi J.

There are many ways to approach this but you need to understand the nuances. John mentioned 2 ways below. If you try buying on the court house steps you will be up against the bank and professional investors. Unless the house is particularly special or the mortgage amount unusually low, the bank will make the highest bid and get the house back. At which time it becomes what is commonly called an REO(Real Estate Owned asset for the bank). Even though you might pay a little more you should still get a reasonably good deal and the property will come with clear title since the bank already cleared it.
There is more to the process of course, but working with a Realtor will help.
I am an agent and an appraiser. We should talk and see how you intend to proceed. Call or email me with your contact information.

Allen Bauman
Century21 Yve R. E.
Licensed R. E. Agent
NYS Certified Residential Appraiser
0 votes Thank Flag Link Thu May 20, 2010
Every tuesday at the court house in Garden City they hold the sales. You have to have clear funds to pay 10% at that time and close in 30 days with the balance. This is not subject to your getting a mortgage. IF you don't close you lose the 10% you paid. So you really have to have the cash ready to close in advance. Another way is buy homes that the bank took back at the hearings. They tend to go closer to full market value. The best way to find them is with a broker. I surgest you find a good Buyers Agent who will represent you and help you find that property for you.
0 votes Thank Flag Link Thu May 20, 2010
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