Once it's bank owned (REO) you have the chance to finance with a mortgage. Buying a foreclosure presents a few other problems, too. You won't be able to inspect, and in NJ, the prior owners have a 10 day period within which they can buy the house back.
If you have any other questions, or would like a list of REO homes for sale on the MLS, just contact me through Trulia or my website, below.
If you are buying an REO (bank owned property) listed with the realtor for sale, you can get a mortgage. I second the information in the answer from Cooper Ford. When buying these types of properties you should consider an FHA 203K renovation loan. Do not believe the hype about these loans taking longer or being more difficult to manage.
I have been a renovation loan specialist for over 10yrs in NY & NJ, I would be happy to consult you on the loan process you like.
Elaine D. Stroman Phone: 917-873-5611 / email: firstname.lastname@example.org
Sr. Mortgage Consultant
& Renovation Specialist
Continental Home Loans
175 Pine Lawn ste 100
Melville, NY 11747
In New Jersey, during a Sheriff Sale (which is an auction), you're expected to pay for it outright. Once the bank owns the property and lists it for sale with a Realtor, then standard mortgage criteria apply. The big difference is that generally speaking, banks will not fix problems with the house. However, you can use a renovation mortgage (such as the 203k) to take care of these issues, upgrade the house how you want, and save a lot of money in the process. If you're interested in any houses in the area, or in the 203k program, please give me a call or email me. Also, visit http://www.the203kconnection.com for more info on the 203k program.
Gloria Zastko Realtors
A foreclosed home just means that the bank owns it. If you are getting a mortgage then the bank would want to see that you are pre-qualified by a lender for a mortgage.
In some area such as mine in the Brainerd Lakes area of Minnesota - there are grants available to help with down payments and closing costs if you are buying a REO or a Short Sale. Buyers do go through a class and need to be qualified for this.
You will want to make your contract as strong as possible to get the property in a multiple contract situation, or something you really want. A cash offer is stronger than one that is contingent on financing. Normally, cash buyers can get a lower price because the offer is considered more solid. You could still get financing and waive the financing contingency; to make a stronger offer.
Foreclosures/preforeclosures are tricky. You will need an experienced agent to guide you through the process. Do not sell your current residence until you are certain the deal is closing. NearlyIf the seller still owns the house, at any time, the he can go back to the bank and make loan restitiution and your offer is out the door. Make sure the bank already owns the house.
Best of luck.