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Hi Jsalad,
The process of buying a foreclosure home for first-time buyers is the same as for anyone else. A good broker will walk you through the steps in a methodical way and keep you informed as to deadline dates and progress. I don't know what "not too hot credit" means, but FHA loans are the least credit-score-driven types of loans. They are more forgiving of poor credit than other types. If a down payment is an issue, the $8K tax credit, if available to you, can be used to fund the down payment, and CHFA down payment assistance is still available. You should prequalify with a lender before making an offer on a bank-owned property. A prequal letter is typically required by these banks/asset management companies to accompany your offer. If you don't know a reputable lender, your real estate broker should have tried-and-true recommendations for you.
A note of caution: Foreclosures didn't used to be any better bargain than other owner/seller homes, but they've become better deals in the last couple of years; however, the banks will still try to get as close to normal market price as possible. They have investors and governing boards to satisfy as well. Have your real estate broker search for ANY property that meets your criteria regardless of whether or not it's a foreclosure. Usually, the addendums that the foreclosure banks use will restrict some of the rights that you would have under the Colorado state contract. The bank addendums supersede the state contract and are written more for the benefit of the selling bank than for you as a buyer. Make sure that your real estate broker is VERY thorough in reviewing the bank addendum and explaining how and where it counters the state contract.
Sun Jun 14 2009, 11:13
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