Home Buying in City Island>Question Details

Beatrice Gal…, Home Buyer in Greenwich, CT

how do you buy foreclosed property?

Asked by Beatrice Galinat, Greenwich, CT Thu Jul 7, 2011

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Trevor Curran’s answer
Foreclosures are someone else's headache. The home probably has not been well-maintained and you're a First Time Buyer adjusting to paying a mortgage. Do you really want to walk in the door to someone else's deferred maintenance that YOU will have to pay for? Also, if you're thinking there are deals to be had in terms of lower prices, mostly those "deals" go to professional investors who can pay cash, negotiate hard with a Lender, and close fast.

For Short Sales, my attitude of late is that First Time Buyers should steer clear. Short Sales tend to be a better deal for the homeowner than for the Buyer. You'll wait MONTHS for the homeowner's Lender to approve the short sale; maybe as long as Six or Seven Months. Meanwhile, you're stuck in a contract to buy that home. I closed a short sale recently with a Buyer who, after seven months said this at the closing table, "I don't even want this house anymore."

And he didn't even get the "deal" on price he thought he was getting! The house appraised for only slightly more than he paid for it at the short sale price. He walked into this deal thinking he was buying a home for $100,000 less than it's value. In the end that wasn't the case.

There are plenty of motivated Sellers with their homes listed on your local MLS. Go find a good Local Mortgage Banker, get prequalified, then find a great, experienced Realtor, and buy the home you want at the price you're willing to pay. It's a Buyer's Market, after all!

Trevor Curran
NMLS #40140
Mobile: 516-582-9181
Office: 516-829-2900
Fax: 516-829-2944
PowerHouse Solutions, Inc.
185 Great Neck Rd, Suite 240
Great Neck NY 11021
Licensed Mortgage Banker – NYS Dept. of Financial Services
NMLS#3528
0 votes Thank Flag Link Wed Sep 12, 2012
Call me I can refer you to many foreclosed properties.

Gladys Viruet
Keller Williams Realty Sales Associate
Mobile: 914 589 2455
Fax: 914 713 3271
Office: 914 902 3277
Email: Gviruet7@aol.com
WEBSITE : http://westchesterpropertyspecialist.com
about.me/westchesterpropertyspecialist.com
PROFESSIONALISM AT ITS BEST!

2nd largest Realty in the country!
0 votes Thank Flag Link Mon Jul 25, 2011
It is important that you proceed with caution. You should work with a professional. I help buyers buy foreclosures in my own state and there are a lot of pitfalls and differences about buying an REO. The banks want everything to work to their advantage and some of the properties are not the "bargain" they present them as.
0 votes Thank Flag Link Fri Jul 8, 2011
If you are paying cash, or already have your financing approved and ready to close, most foreclosures are offered at auction at your county courthouse. The auctions for foreclosed properties work just like other auctions, however, you must be extra vigilant to protect yourself on title issues, repairs and various other items that may crop up.
Sometimes, properties offered for auction do not get enough money to satisfy the lien holder, typically the bank. They will then offer the property through typical real estate channels, hiring a listing broker and offering it through the MLS. Then the sale works like any other sale. If you would like to get pre-qualified, American Bank offers fast pre-quals at no charge. We would love to work with you!

Good luck! Jim, American Bank, 703 615 4675
0 votes Thank Flag Link Fri Jul 8, 2011
Before purchasing a foreclosed property get very educated as to the process. Generally foreclosed properties will be first sold at auction. If the lien holder is not satisified with the amount of money offered they may hold it as their own, and then they will market it usually through a broke. As stated previously, there may be many other costs involved, including back taxes, and other liens
0 votes Thank Flag Link Thu Jul 7, 2011
Consider working with an agent of your own, he/she will be your best guide...
0 votes Thank Flag Link Thu Jul 7, 2011
Good morning....The process is basically the same to buy ANY REAL PROPERTY- First, you get pre-approved from your lender (so you know your buying power meaning what is a comfortable full payment- money to pay back the loan + property taxes and hazard insurance and any property/home owners or Condo fees included in the payment) then once you have that in hand, you find yourself an compentent RE agent that knows the process of a foreclosure property which differs from a "regular homeowner" sale as far as time frame to close and any addendums the bank WILL have that will differ from a "regular sale"......... Hope this helps.... Many blessings
0 votes Thank Flag Link Thu Jul 7, 2011
Dear Beatrice,

There are many things to consider when purchasing a foreclosed property. Although foreclosures are priced significantly less you have to look at the overall picture to make the right decision for you. After viewing the property you have to consider the cost to you to do the renovation. Some properties may require a significant amount of work while others only requires cosmetic work. If you have to replace the heating, electrical, plumbing, windows, roof, etc. Those are some of the components that will be a determining factor for any home buyer. I work in the City Island area and have seen some of the distressed properties in the area but because of the location some buyers enjoy the fact that it is away from the City but easlily accessible by bus to Orchard beach and the Pelham Bay Park.

Happy home hunting.
0 votes Thank Flag Link Thu Jul 7, 2011
Find a good local Realtor and they will walk you through all the steps from search to offer to contract to closing!
0 votes Thank Flag Link Thu Jul 7, 2011
Beatrice,

It's always best to purchase property through being represented by your own personal representation. Many regret using the "listing agent" to represent them as the buyer also. Our recommendation is to contact a local realtor, someone other than the listing agent.

Good luck,

Bill
0 votes Thank Flag Link Thu Jul 7, 2011
Beatrice, there are different types of distressed properties. A foreclosed property is usually put on the market for sale by the lender that has already foreclosed on a property and you should be able to find these properties on the MLS. They are described as banked owned, lender owned, or REO properties. Some banks will also post these properties on their own websites.
0 votes Thank Flag Link Thu Jul 7, 2011
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