I need some more information to be able to answer your question better. If they property is already listed for sale, most likley it's a short-sale situation. Which means that the loan balance on the home is more (higher) than the current fair market value. For example, a seller might have a loan balance of $200,000 and the buyer is willing to pay current market value which could be $150,000 (it's SHORT the $50,000) then we negotiate with the lender to accept less and agree to a "short sell" rather to foreclosure on it down the line. If its not listed, you can try to talk with the seller and negotiate the sale. if they are behind on their payments usually you can offer to pay off the bank and obtain a new loan and buy it. Choose a competent real estate agent that knows and understand they dynamics and the complicated paperwork involved.
Obtaining a Realtor will make the process much much easier. Most of the homes in this market are in some sort of distress and or "Pre" foreclosure.
Why wouldn't you want to purchase a Bank REPO/Foreclosed home?
Lesley Harris, Realtor
How you purchase a home in foreclosure is going to depend upon a few things.
Since you say it's "in foreclosure", I'm going to assume that the current owner has received a notice of default and may have a trustee sale/auction scheduled.
If this is the case, the next question is are you looking at a particular home? Is that home currently listed for sale?
If it is for sale, is it a short sale? A short sale occurs when the owner owes more on the home than it is worth and is asking the bank to accept less than what is owed up on sale.
If it is a short sale, you need to make an offer on the house and expect to wait any where from a few weeks to a few months to get the bank's response. If it's in foreclosure but not a short sale, it would be similar to buying a home that wasn't in foreclosure.
Your first step in any case if you want to buy a home is to contact a lender and/or realtor to discuss your options and to get prequalified for a loan.
If you intend to buy a home that's already been foreclosed, please see http://www.donovanblatt.com/how-do-foreclosures-work-purchas
Your Realtor is your trusted advisor, someone who is looking out for you and will earn your respect with the information you'll get from their knowledge and experience. Finding a Realtor is easy, selecting one to work for you might be a challenge yet could be fun and exciting too.
Invite a Realtor to meet you for coffee and ask him/her why you should consider hiring them as your real estate agent. Take notes with the positives and negatives and sort them out weekly, keeping the best three. Depending on your timeline, you'll have three very good Realtors to select from and perhaps one will be more suitable than the others, if not you'll have learned more than you know now, wouldn't you?
If you don't drink coffee, have tea, regardless you'll know more about real estate than most renters.
It's not as difficult or bad as you might think. The first step is to work with a Realtor who done a few of them and knows the ins and outs and pitfalls. Also one who will listen to not only what you say but also to what you don't.
I live and work right here in HB and have experience on both sides (buying and selling) and with pre- and post-foreclosure properties.
Give me a call and let's get started.
Interview agents who work with buyers and are successful in closing properties in foreclosure, or even short sales. They will be happy to provide you with references and a list of what they have closed.
I would take "in foreclosure" to mean either before it goes to trustee auction, or during the auction process. If it goes back to the bank then it is already foreclosed on.
Before it goes to auction is when the owner can either pay up what they owe or sell it for less than they owe.
The banks need to approve the sale since they will get less than what is owed. You can get good deals at this time the benefits are:
â€¢ The property usual in good shape because the owner wants to sell it quick
â€¢ It is prices well so it will sell quickly.
The problems are:
â€¢ The bank has to approve the sale which can take a long time.
â€¢ If there is a first mortgage and a second mortgage both have to agree
â€¢ After waiting a long time you might still not get the property
A foreclosure auction is a special auction which in this market is really for the big guys.
The problem with these auctions is:
â€¢ You have to do a lot of home work
â€¢ There is lots competition.
â€¢ If you get a property you have to deal with the old owner
â€¢ A lot of time they destroy the property
If you buy after the bank takes it back, the bank will try to put the property back in to good order.
The some benefits for buying a REO (Bank Owned) property are:
â€¢ Usually a good price
â€¢ It is like a normal sale 30 to 60 days escrow and you are in
Some of the problems:
â€¢ The best properties usually sell either at short sale or auction
â€¢ REOâ€™s can take a lot of work
I hope this helps. If i can help you find a properry please let me know.
Mark Artesani 714-315-1098
Don't be concerned with the title "Foreclosure", though it's different for the Realtor, the reasons are the same for you...Location, amenities, price, etc are your concern. A great Agent makes that process simple for you, so choose someone you are comfortable with and can create a trust with and ... Go for it!
Move on up. like "The Jeffersons" from renting to owning. Huntington Beach is amazing, great choice!
I wish you the very best!
Stay Blogging My Friends!
Using an experienced buyer's agent is the key. There are several advantages and disadvantages in the purchase of a foreclosed home and you should have the adivce of an expert.
If you need information on foreclosed homes in Massachusetts please feel free to
contact me at 781-389-7252 or at Cidalia@kw.com
Additional information is available at http://www.homesbycidalia.com
There are two ways to buy a foreclosed home.
1) Work with a qualified Buyers agent who can help you find a home that has already been foreclosed upon by the bank. The banks will hire an agent to list a home on the market just like any other seller.
2) Bid on a home as it is auctioned off on the county court steps. You will need to have all of the purchase funds immediately available.
If you are interested in a list of Bank Owned homes that are on the market in the Huntington Beach area, please email me at email@example.com or call me at 714-878-5040 and I can send that right over for you. I grew up in the Huntington Beach/Westminster area have know the area well.