First let's deal with how you finance a foreclosure. Basically, the same way you would finance any other property, assuming you are buying either a pre-foreclosure or a post-foreclosure. The only time this does not hold true is if you want to purchase the property at the trustee sale. Then you basically need cash on the day of the trustee sale.
Regarding how much loan you could qualify for, you need to speak with a great lender who understands 1st time homebuyers. Let me know if you need a referral.
Lastly, about the areas you like, 90046 and 90069. There is one property under $200k. It is a one bedroom one bath condo. At this time, this area has not come down anywhere near that much. In the past 30 days, the lowest sale was at $285,000 for a 1/1/ condo. The lowest SFR sale was a 2/2 for $550,000.
To buy a great home at a great price you might consider the following steps:
1. Get pre-approved with a great lender. That way you will know how much you can borrow.
2. Ask around to family members and see if anyone would like to invest in a home that you will make the mortgage payments on and maintain.
3. Then add the amount of their investment to the amount of your loan to determine your purchase price.
4. Work with an aggressive realtor who will help you identify deals, make offers, and negotiate for you.
5. Evaluate the areas you can afford, identify those areas within the affordable areas where you would be willing to live, and have your aggressive realtor keep on top of every property that comes on the market in those areas.
6. Be patient and persistent.
Dare to Dream.
Real Estate Consultant
RE/MAX Palos Verdes Realty
There are catches, and guidelines - but you've chosen an area where this could actually work. If you don't have an agent who understands these programs, please call me - If you are working with somebody that you're comfortable with - please pass along the info and ask them to inquire with LAHD to find out whether this would be a good option for you.
Best of luck!
Jeri Creson, Broker
TotalAccess Realty Advisors
As you know, right now is a buyer's market, however in those zip codes you would be hard pressed to find anything below $400K that wasn't a major fixer. Probably even higher. Your best bet might be to look into doing an FHA loan so you'd be able to put down less money (as little as 3.5%) and talk to a mortgage lender about the monthly payments you're comfortable with.
At that point you'll know what range fits you best and you'll want to work with a great agent in the area. I'm happy to help you find some great foreclosures around that area when you're ready.
Keller Williams Realty