1. The first step is to get pre-qualified before you start looking at anything. That way you will know what price range you qualify for. No matter what type of purchase you make whether its Foreclosure, Bank Owned, or Equity seller, you will be tied to your price range.
2. Select a Realtor to work with. The Realtor will be able to provide you with foreclosure listings. The way I like to provide my clients with listings is to provide them with automatic email updates. That way their search is on autopilot. They can preview the listings complete with pictures and decided if its something of interest before we even go out to see the property.
3. When a home is in foreclosure, it is usually, in most cases a short sale. A short sale is when a seller is offering the home for sale for less than they owe on it. And short sales are either approved upon listing or not approved. If you encounter a short sale that is approved upon listing it simply means that the sale price has already been approved by the lender. If the short sale is not approved upon listing, it will be subject to the lender's approval once an offer is submitted. The time it takes to get a short sale offer approved by the lender is different depending upon who the lender is. You may have to wait as little as a couple of weeks or as long as a few months to find out if your offer has been accepted.
4. Every seller is different but usually your agent would have to present the purchase contract and appropriate addendum's, pre-approval letter from your lender, and copy of your ernest money deposit check.
5. As a Realtor I can tell you that there are many details involved, but one thing that you can count on is that we handle all of those details on your behalf and speaking for myself keep you updated as we go along. As long as you have a Realtor working with you, you can't go wrong.
Michael G. Grimm, Realtor
Loan Consultant, Loan/Debt Modification Consultant
(877) 444-3993 (toll free direct)