Yes, as long as your purchase agreement included an appraisal contingency. An appraisal contingency states that in order for you to obtain a mortgage the house must appraise for at least the amount stated on the contract. You can make up the difference if you want, but are not obligated to under this contingent arrangement.... more
Foreclosures can be a great opportunity to purchase a home well below market. First and foremost do your research. Many of those going into foreclosure are foreclosing because they financed their homes for more than market value; therefore, they could not sell their homes or refinance and were forced into foreclosure. Although much of the US is experiencing a down market for sellers and a strong buyers market, some mortgage institutions have not been realistic with pricing the foreclosures where they should. This has resulted in more foreclosure listings in the MLS than foreclosures being sold at the county steps. Do your homework to ensure that the foreclosure is well below market. Know that those who could not afford to keep their homes typically could not afford to upkeep their homes so be prepared to make some repairs and cosmetic changes. In many cases those being foreclosed upon take all the appliances and even rip up floor coverings.
Do your research on any liens placed on the property. Many counties have placed property records online. If records are not available online then you will want to take the drive. If you are purchasing a listed foreclosure then the attorneys office that is handling the closing will order a title search and you would want to purchase and owners title coverage policy which will protect you from any liens prior to your ownership.... more
It is difficult to find out about the financial status of a home if it is not yet in foreclosure. Once it is in foreclosure and is being sold via auction or REO, you can usually find the listing via their website: http://www.hud.gov/homes/homesforsale.cfm.
However, you can find the bank holding their loan by contacting your local records department, the link is below. They would be able to help you find the bank, the name of the owners, loan amount, etc., through their department or they can direct you to the office you should visit to find the information.
Good luck on finding your home! Beware that foreclosures are rarely the bargains we all think they are, there are many hidden expenses that occur during the purchase of the property and there is a increased chance that the property may require significant improvements and repair. However, if you definitely looking you should continue working with your Realtor. He should be able to provide you with more foreclosure listings and help you through the complex process. Good luck!... more