You would finance it the same way you finance any other property.
The only red flag would be if the property was in poor shape and does not need lender conditions for funding.
Kawain Payne, Realtor
Prudential California Realty
90% of REOs (bank owned) properties should be accessible by a real estate agent through a common lock box we all use. Unless the REO represents a health and safety or other hazard, it should be available for viewing. The buyer's agent you hire (whose fees are paid for by the seller by the way) will be able to get the total scoop on the property and at least put you in a position to make an offer subject to interior inspection. This way you can be in the game, but witthdraw your offer if you decide you don't want the property after your inspection.
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I as a realtor can show you the foreclosure properteis and would need to know what price range you are looking in and how many bedrooms, bathrooms, square feet. Then the city you are interested in.
Financing I can send you some mortgae brokers and bank lenders. You may try your bank or credit union to find out what you qualify for.
Talk to you soon..
Ingrid Ski Realtor
1) There are foreclosures that you may find on the internet from companies like RealtyTrac, that post foreclosures that are not really for sale. They simply are taking data from homes that may be going through a foreclosure or a home that has gone through a foreclosure. The amounts they post for the property are not the actual price that the home will sell for.
2) The foreclosed homes that are actually for sale will have an MLS# in the details section to the right of the picture. These homes for the most part are easy to see. Find a realtor in the local area that knows the community well and ask them to show you the property.
As far as financing it, that is pretty much the same as financing any other home. The home just needs to be in a certain minimum condition.
If you have any other questions you can call or email me anytime.
I am available Sunday 3/18 either at 11am or 1pm in my Brookhurst/Adams office - you can call me direct at 714 964 5806 -
I am also a Short Sale Resource expert - so if you want to know more about those types of properties I can help you also - To make an Informed Decision -
talk soon - Hope
As both a Realtor and a Mortgage Broker, I'm in a unique position to assist you. If you're not already working with an agent, I can handle both your financing and your Realtor representation. My contact info is below.
James Melton, Realtor, CA DRE Broker #01222353, NMLS #300133
President, Victory Mortgage & Real Estate Home Loans & Sales Since 1979, NMLS #366399
cell(714)318-4664, phone(714)374-0022, fax(714)844-9094
Regarding bank foreclosure properties: there is a period after the trustee sale where the property is in a "pre-list" status, meaning that the bank needs to make arrangements with the prior owner to vacate the property and/or any tenants that may be there as well. There are occasions where tenants have a valid lease and will be remaining in the property throughout the sale, and even after until their lease expires. In the majority of cases, the property will be vacant before it is listed on the MLS. During the pre-list phase, the bank also has appraisals done on the property to determine the listing price, and property inspections to determine the condition of the property and if it will qualify for financing or need to be a cash sale. The bank also determines if there are any outstanding liens on the property, such as deliquent HOA dues or property taxes. The bank clears these items in order to provide clear title to the new owner. Once the background work is done, the property will become available for real estate agents to show to their clients.
So, to see a foreclosure property, you would use your agent, just as you would to see a standard sale or other type of listing. There should be a lockbox on the property for your agent's use.
Financing a foreclosure property is similar to any other type of property. The differences to be aware of are that often the bank will not make any repairs to the property. If there are health and safety issues that keep the property from qualifying for financing, the bank may choose to do those specific repairs: plumbing, heat, a functioning kitchen. Or the bank may choose to sell for cash, most likely to an investor who will rehab the property and resell it once it can qualify for financing. Another major difference is that traditionally a bank will not offer a home warranty to the buyer (although the buyer can purchase their own) and sometimes will not do required termite repairs either. Your agent can help explain all the different aspects of the purchase, escrow and loan process. There are a lot of factors! But to sum up, the real difference is that the seller (the bank) will not provide many of the repairs and niceties that a traditional owner would. Other than that, you see the property and purchase the property pretty much the same way. Do your inspections! Remember, the bank did not live in the property and so cannot disclose to you if a toilet overflowed or the roof leaked in the past.....Good luck to you!
Foreclosure properties are vacant and owned by the bank - since they're vacant, the listing agent typically puts a lockbox on the door and instructs the buyers agent to go at anytime to see the property.
That's why the listing doesn't show a "call to view the property OR Showing phone number". The buyer calls their agent and they can go see the property at their convenience - you need an agent in order to get in via the lockbox key. Make sense? Hope so.
Also, since it's a foreclosed property and owned by the bank. The listing agent's bank may require pre-approval from the bank that owns the property, that way they know the potential buyer is qualified to their (the bank that owns the property) standards.
Hope it helps, if you'd like to go see properties, let me know.
MBA | Realtor
Voted #1, Best of Orange County, OC Register
The financing is very similar to financing a standard sale though depending upon condition, some foreclosures may not qualify foe certain types of financing, especially FHA.
If you duo not have am agent, I would be happy to look into the home for you and schedule a time for you to see it if possible.
Dude, Eric Bryant, what a strange twist :)
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Best of Luck
Please contact me for more details.
And yes, you should have your own agent - not using the listing agent to purchase the property. The ONLY person who gains from using the listing agent to buy a bank owned property is the listing agent.
There is no advantage for a buyer to go direct to the listing agent.
As far as financing goes, prior to even looking at properties, you should be PRE-APPROVED - by a good lender, who knows what they're doing. I can recommend a couple of great lenders, both of whom know what they're doing.
I can ALSO recommend a great agent, to help you in your search.