Hello Terry: Foreclosures are tricky to deal with...you must first understand who controls the property at the time you want to purchase. A property is foreclosed when the bank formally regains legal control of the property. This may differ from state to state. However, In New York, the owner is given a sale date at the court.....The owner has the first right to repurchase the property, if not anyone else can bid on the property. If there are no takers, the bank reclaims the property usually for the upset price or less.

Once the bank retakes the property, it becomes an REO so the control essentially shifts from the home owner to the lender.

Terry:

Definitely get pre-approved prior to looking at homes. You must be ready to act quickly when you find a good foreclosure. Chances are other buyers will be competing for the same property. Any local bank should be able to assist you with the loan on a foreclosure.

Be sure to save a cushion in your finances. Typically in foreclosures there is cosmetic work that needs to be done and appliances are rarely in the home. Not all foreclosures are in bad condition, however you will find that a good majority need work.

Best of luck with your search,

Have you found a home yet. Coldwell Banker Heritage has a huge bank owned division. Probably the first thing you need to do is to talk to a lender and get a pre-approval letter. The banks will only consider offers from buyers who have been pre-approved. Scott Rife at US Bank is a loan officer who has experience with bank owned properties. You can reach him at http://www.srife.com or 937.430.3344 You can tell him I sent you. Once you get pre-approved, you will need to choose a Realtor to help you find a property. I would be glad to help and have experience with purchasing bank owned properties.