Mayra, Home Buyer in Yonkers, NY

with pre-foreclosures is there a higher down payment or can it only be monthly payments?

Asked by Mayra, Yonkers, NY Tue Feb 5, 2013

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Hi Mayra,

I'm not sure exactly what you mean by a pre-foreclosure. You may be asking about a short sale. The simple answer is that in some instances (FHA loans) you may be able to put as little as 3.5-5% down. On a conventional loan, you may need 10-20% down. It really depends on the lender, your credit, whether you plan on living in the house or it's an investment. There are too many variables to be more specific. I suggest, if you are seriously interested in buying a short sale or foreclosure, you talk to an agent and a mortgage broker before you begin looking. Get a pre-approval to see how much you can afford and what type of downpayment you will need. That's the only to really know what you 1) can afford to spend on a home; and 2) what type of downpayment is acceptable.

Barbara O'Connell
Licensed Real Estate Salesperson NYS
Margot Bennett, Inc.
0 votes Thank Flag Link Wed Feb 6, 2013
Your down payment is based on your loan approval and how much you can afford, not on the fact of whether the property is a pre-foreclosure. Pre-foreclosures affect the time it will take to close and the party with whom you are negotiating. If you are borrowing from a lender, your monthly payments will depend on your interest rate and your money down.

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Rey Hollingsworth Falu
Licensed Associate Real Estate Broker
Houlihan Lawrence - Bronxville

Direct 917-855-0277
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0 votes Thank Flag Link Wed Feb 6, 2013
You really need to talk to your mortgage person before begining your home search.
0 votes Thank Flag Link Wed Feb 6, 2013
That is up to your mortgage person. The big Problem is that a pre-foreclosure property is still owned by the person that cannot pay their mortgage, and the amount owed is (Usually) much more than the house is worth.

0 votes Thank Flag Link Tue Feb 5, 2013
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