Buying a Foreclosed Home - Advice Needed!

Asked by Jill, Weston (hopefully soon) Sat Jul 26, 2008

Hi all, great advice on other questions.

We recently relocated to Ft Lauderdale and are seeking to purchase a foreclosed home in Weston, but are new to this. So we have a number of questions...

- do we work with a traditional realtor when buying a foreclosed home or are there specialists?
- given that we're going to be financing our home and not paying cash, does that mean we generally won't be able to bid on auctioned homes (and thus should focus our attn on Lis Pendens and REO homes?)
- can we rely on the "estimated bid amount" and the remaining loan balance as good ballparks for what the homes will sell for?

Thanks very much for your advice.

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Jeff and Gin…, Agent, Vero Beach, FL
Sat Jul 26, 2008
Good questions!
- You may work with a traditional Realtor, but try to select one who has some experience with short sales and foreclosure homes. You should work with a Realtor to help you make the best choices about what area(s) best suit you and what home to buy
- You definitely need to start shopping for a mortgage as well. When you have decided on the mortgage lender, get pre-qualified for the maximum amount you may bid on a property. Your lender will then be able to quickly supply a pre-qualification letter to accompany your offer. Many times this verification of your ability to pay is required by the bank involved to even consider your offer.
- The estimated bid amount and the remaining loan balance are good ballparks but not any guarantee that the home will not sell for less or more. The best qualified offer will be accepted.
- Using a Realtor for this transaction (we suggest one who has earned the prestigious CRS designation) will help you to avoid some very real pitfalls and also help you know when to stop bidding when another similar property is available for a better price.
- Be sure to hire an inspector, get title insurance, and so forth, all the matters and more that your Realtor will help you with.
- Good luck!
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