can forclosures be financed or must the balance be paid.?

Asked by Bev Arends, Sonora, CA Fri Nov 30, 2007

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Athena Chili…, Agent, Weston, FL
Sun May 30, 2010
Hi Bev,
As a Certified Foreclosure Specialist, that answer may be simple; however, given the ever changing Lending requirements, the answer is that it depends upon the condition of the home.

If the home qualifies for a loan, then as a buyer you can look at conventional loans of 20-25% down payment or even FHA (again the home must qualify). Also, the Seller (in most cases it is a Lender or a third party representing the Lender and Investor will only look at qualified Lenders such as BofA, Wells Fargo, Credit Unions and may reject mortgage brokers unless the Mortgage broker can provide the pre-approval from the actual lender being a BofA, etc.

If the home simply does not qualify for a loan, then the purchase would have to be cash.

Great Question! Kindly, Athena
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The Hagley G…, Agent, Pleasanton, CA
Fri Nov 30, 2007
Better than a pre-approval is an "approval" letter to submit along with your offer. Good luck!
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Mario Pinedo,…, Agent, Cupertino, CA
Fri Nov 30, 2007
Short Sales can be financed just as a normal purchase. The only difference in the transaction is that the lender is approving a short payoff on the loan balance due.
REOs, Bank owned properties, homes that have been foreclosed on - will be sold also as a normal sale. Financing contingency periods can normally be negotiated. A preapproval letter will help you negotiate the purchase.
A purchase on the court house steps - a trustee sale - can be financed also. A cashiers check deposit - usually 10% of the purchase price - is required to tie up the property. Then, the buyer is given time to get the loan approved and close the purchase - 30 days is common.
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Kathleen, , New Albany, IN
Fri Nov 30, 2007
Yes, Foreclosures may be financed. You should be pre-approved and have a pre-approval letter prior to making your offer. This letter would be submitted with your offer to the bank showing that you were financially able to purchase the property. Our office has an Attorney on staff and a Proven Negotiator to make sure your offer is solid and complete which will expedite the process.

Please let me know if you would like further information for the Clearwater, largo, Dunedin, Palm Harbor, Tarpon Springs, St Petersburg or surrounding areas in Florida.
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