Foreclosure in Melbourne>Question Details

Dez Martin, Home Buyer in Palm Bay, FL

how do i learn or have someone help me with the process of buying a forclosed home?

Asked by Dez Martin, Palm Bay, FL Sun Aug 24, 2008

do i have to buy it full price or put a % down?

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5
First make sure you have some patience... Then get pre-approved for a mortgage, you will need this before you can make any offers. You should find a buyer broker who specializes in bank owned homes to assist you. The basic rules are be pre-approved, do you inspections prior to putting in an offer because the sale will be as is, base your offer on the inspection and.or any needed repairs. Make sure you dont ask the bank to fix anything, dont include any contingincies, make sure your deposit is in teh form of a bank check and at least 1% of teh sales price, be prepared to close within 30 days. Ask if the foreclosure deed has been recorded or at least completed, this could cause a delay in closing. i have more tips on my website if you want to tak ethe time. Good luck with your purchase dez.
Web Reference: http://www.ScottSellsNH.com
1 vote Thank Flag Link Wed Sep 3, 2008
Mr. Martin,

Your best bet would be to speak with a Realtor. There are various places to find foreclosures, not just the MLS. Most of these outlets will pay for your Realtor, and often encourage the use of one! The terms of buying a foreclosure are different for each property, and once you find a Realtor they can help you with these.

I do agree with the previous posters. STAY AWAY FROM SHORT SALES if at all possible.

Lauren Merrell
Realtor
Stirling Sotheby's International Realty
321.987.3328
1 vote Thank Flag Link Wed Sep 3, 2008
Since the purchase of a bank owned property is basically driven by the bank who foreclosed, any agent can assist you--the purchase is done in the same manner as any other home purchase transaction--just that you are dealing with the bank instead of an individual. Also, you need to realize that bank owned (foreclosed) properties are "as is" sales, which means you forfeit the opportunity to have the owner be responsible for repairs on the "bones" of the house--electrical, plumbing, wood condition, windows, doors, etc. Also remember that you are going to pay up to 80% of the listed price on a bank owned property--the bank MUST (is legally bound) get as close to the value of its mortgage as possible! So, where's the great deal--forget the impression that realtytrac gives you, work with a realtor, and you probably will get the value you deserve. Good luck, and happy househunting.
Web Reference: http://www.MykeTriebold.com
1 vote Thank Flag Link Mon Aug 25, 2008
Hello Dez,

Many people believe that buying a 'short sale' or 'foreclosed' property is a great way to save some money when purchasing a home. Be very cautious here! At least I'm glad to see you are asking for a foreclosure rather than a 'short sale'. In this case the bank has probably already set the price and you can be certain it wil take less time than a short sale. Keep in mind, however, that the property may have already been through that process. Many of the homes I see in this situation have been left in poor condition. Some appliances removed, damage to walls and plumbing but mostly, be cautious of the major problem - mold. Many times the A/C has been turned off for long periods of time and moisture is allowed to penetrate the house. Be sure to get a good home inspector and tell them you want a mold test done.

In many cases you can find non-distressed homes for sale that offer similar or better savings without all the hastle. Don't overlook these.

Good Luck in your search for a home here in Florida!

Ken Mundorf, Realtor
321-626-5933
1 vote Thank Flag Link Mon Aug 25, 2008
Hi Dez,

Congratulations on deciding to purchase Florida property!
All you need to do is contact some area agents by telephone and interview them relative to purchasing foreclosed property. During your conversation about this specific process, they do not mention the importance of follwo-up with the bank representative, documentation and follow uo on all aspects of this transaction, and developing a one-to--one relationship with the banking representive handling your offer.......move on to the next person.

Also don't "put all of your eggs in one basket." There are other real savings opportunities with regular transactions of homes that were purchased by the owner pre-2003 when prices sky rocketed. Often these deals are better than the "foreclosures."

Avoid "short Sales" since there is too much risk involved, prolonged waiting, and often disappointment because of someone else getting the home.

Hope this is helpful.
The "Eckler Team"
Michael Saunders & Company
billeckler@michael saunders.com
941-408-5363
1 vote Thank Flag Link Mon Aug 25, 2008
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