1.) Since the house has gone thru foreclosure, it is now owned by a Bank, not and individual
2.) Since the Bank owns it, no one at the Bank can tell (Disclose) anything about the house; this would include work done, leaks, repairs, things damaged, flooding, neighborhood noice, etc.
3.) There is no emotion involved; they don't care if you will love their house.
4.) All they care about is money.
5.) They are a bureaucracy
6.) They want to sell the house AS-IS, no repairs, no warranties
7.) They don't want to pay for any inspections
8.) The Escrow will take 45-60 days (as opposed to a normal 30 days.)
9.) They won't want to pay for any of your Closing Costs
10.) You may be able to buy the house for 20-50% less than a "normal" sale
11.) You will probably have some repairs to do.
12.) Many REO's will not qualif for FHA financing (due to Health & Safety issues)
You really, really, really want to have your own Agent protecting your interests!!!
Good luck and may God bless
I could not agree more with the response below that you NEED a buyers agent protecting your interests during the process of purchasing a foreclosed home. Many times they are sold as is and so there are many contingencies to address. Aside from that yes the process is the same, you qualify for a mortgage and use an agent to find your home and assist with the transaction. I would be happy to assit you! I work closely with a loan officer from our in house lenders and I could have a prequalification with in a day or two and we can begin house hunting! Please give me a call!
Danielle R Gurst
REMAX Affiliates NE
267 423 2623
The process is the same buit you may encounter issues that are different from buying a "regular house" Thes issues have been explained very well by several Realtors here
There are agents that specialize in selling REO's but you are looking for a buyers agent. so I would have to say that any experienced Realtor will have had exerience with REO's at this point. If you find a good Realtor they will be able to answer all of your questions. There seem like lots of good realtors here. I have spoken with FamousEric and he knows his stuff, but I am sure many of the others do too.
Cornerstone Lending Inc
Southampton Pa 18966
215 953 0800
cell 267 992 7276
VOTED BEST IN BUCKS 2010
I will gladly take the time and answer all of your questions about the home buying process soup to nuts.
Re/Max Affiliates NE
The process is silightly different. The bank will require proof of funds if you are paying cash or a pre-qualification if you need a mortgage.
I have read some of the answers that where posted on here, there are some diffreneces on how the process works.
First like I said, you will need a pre-qualification, or proof of funds if paying for it in cash.
Second, the bank will allow a home inspection, but it is for your information only as the bank usually doesn't make repairs and sells the foreclosure AS IS. Which means what ever is wrong with house, it is up to you to make all and any repairs. Although I have seen some banks make repairs.
The process on the recording of the deeds is taking some time. Anything still available before December of 2010, should have been recorded. Since the sheriff's office went through some changes, all foreclosures have a 90 day waiting period before the deed is recorded. This means some of the foreclosures that went in April are not being recorded until maybe this month.
Some banks will pay for the closing costs as long as you use there title company. The reason for this is because the bank has already started title work on the property, so they can clear up any liens or judgements against the property.
I have been in real estate for about 5 years and I do alot of the foreclosures, selling and buying. If you have any more questions, please feel free to give me a call as I might be able to help answer any more questions you might have.
Keller Williams Real Estate
I will reply. If your goal is to get a deal & you don't have a deadline, we could look at short sales too. Good luck & have fun!
Ron Thomas summarized the differences very well. Get in touch if you wish to discuss further pursuing a foreclosure in your area and if it makes sense for you.