Home Buying in Hayward>Question Details

Tonyrab365, Home Buyer in Hayward, CA

How do I purchase a distressed or preforclosure home. If the owner and I have agreed on a sale price how do we proceed, or must it foreclose.

Asked by Tonyrab365, Hayward, CA Thu Feb 28, 2013

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Is the price enough to cover what the owe to the bank and all the costs of transferring the property? That is the key. Be sure to have a good real estate attorney or real estate agent involved. Doing it alone can really cost you
2 votes Thank Flag Link Tue Mar 5, 2013
Hi Tony. Find a real estate agent that you feel comfortable with and start looking at these specific homes. Inventory is quickly disappearing, so I'd move fast if I were you. GOOD LUCK. Scott Miller Realty Associates Boca Raton, Miami Beach, FL
1 vote Thank Flag Link Mon Mar 4, 2013
Hi Tony

You are talking about negotiating a Short Sale transaction with a lender/s.
It's a complex process and will be prudent for you to enlist the services of a
Realtor.

Letting the property Foreclose will not be prudent, as an Investor can but the property on Court steps
And outbid you or buy it collectively as a lump of homes.

Hence, go enlist the services of a Realtor.

Good luck.
Perry
Web Reference: http://www.ruthandperry.com
1 vote Thank Flag Link Fri Mar 1, 2013
You need to get someone involved who helps buyers and sellers as a profession…a Realtor.

I am concerned that you are not knowledgeable about what you want to do.

How have you determined the value of the property? How have you decided upon a price? What paperwork will you prepare? Who will prepare the paperwork? Do you know how much the seller owes including penalties and fees? Do you realize that the existing lender will not release the deed to you without payment in full or approval on a short sale? How are you going to pay for the purchase? Do you know how many liens are on the property and what are their amounts? Do you know if the property taxes are current? Who will pay what closing costs?
1 vote Thank Flag Link Fri Mar 1, 2013
If your offer price and fair market value is less than the owner's loan value then the owner needs to do short sale, negotiate and get the approval from the lender(s). You need to check if the loan is FHA or non-FHA loan. You also need to check if there's any other lien on the property. The short sale is scenario which I mentioned above is only if the bank hasn't foreclosed his house or closer to the trustee sale.

Let me know the address and I can check if there's any notice of default or trustee sale issued so that you can move forward accordingly.
1 vote Thank Flag Link Thu Feb 28, 2013
In Michigan you would have to buy it through a short sale or at the sheriff sale.
1 vote Thank Flag Link Thu Feb 28, 2013
If it's a pre-foreclosure...at what stage?

Has the seller received a Notice of Default or Notice of Trustee Sale?

Is the sales price you agreed upon enough to pay off the seller's lender? If not, then the loan won't be satisfied. So who will pay for the difference? You?

If your seller is truly underwater, has he considered trying to sell the property as a short sale? If not, he should at least look into the possibility.

Good luck.
1 vote Thank Flag Link Thu Feb 28, 2013
You must stop the f/c. Then prceed to close the transaction. BUT BEFORE U DO ANYTHING, GET ALL THE DETAIL IN WRITING. People "FORGET" many of the details in this stressful situation. Any questions, give me a call. Brian n the Hayward Hills 510-682-9612
0 votes Thank Flag Link Sun May 5, 2013
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