If a house is in foreclosure, are you able to buy them?how does that work?

Asked by Kimberly, Mason, OH Sun Jan 27, 2013

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Trevor Curran’s answer
Trevor Curran, Mortgage Broker Or Lender, Great Neck, NY
Mon Jan 28, 2013
Good morning Kimberly,

If a home is on the market then it's there for you to present an Offer to Purchase! When you state the "house is in foreclosure," does this mean you have found a home for sale (on the market) that is a foreclosure or does it mean you have knowledge of a home in foreclosure?

If it's the former, then have your Realtor prepare a written Offer and begin the negotiating process. If it's the latter, then you won't be in a position to buy the home until the bank (or some other entity) buys it at auction and puts it on the market.

An important note about foreclosures: the "Asset Manager" at the bank that owns the home may have a bottom line number she needs in order to sell the home.

I have noticed of late that Asset Managers have become slightly more flexible when negotiating with Buyers. Some banks are actually effecting minor repairs in order to facilitate a Purchaser obtaining mortgage financing. HIstorically foreclosure properties have sold to all-cash buyers. But with a large inventory of foreclosed homes, and the fact that cash investors will only buy with a substantial discount off list price (because they're paying cash), I believe that more Asset Managers are realizing they need to be more flexible with Buyers obtaining mortgage financing.

Put your best foot forward, make your Offer and begin the negotiating process.

Trevor Curran
NMLS #40140

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1 vote
Ruth and Per…, Agent, Los Gatos, CA
Sun Jan 27, 2013
Hi Kimberly

A home in foreclosure with a For Sale sign in the front of the house can also mean
That it is a Short Sale. Should it not sell, then it is likely the home will foreclose.

At that point you can but it on the court steps with All Cash. Or you can wait for it
To be listed afterwards by the Bank through a local Realtor.

This can take time, for a home to foreclose and be then listed.

Check with the many fine agents responding if they are aware of any homes available for sale already foreclosed.

Good luck
Ruth
Web Reference:  http://ruthandperry.com
0 votes
Shanna Rogers, Agent, Murrieta, CA
Sun Jan 27, 2013
Hi Kimberly,

If the house is in foreclosure (meaning it hasn't been foreclosed on yet), then you can buy it if the seller is trying to sell it - has it listed for sale.

Now, if the house has already been foreclosed on, you will need to wait until the bank that owns it lists it for sale.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
0 votes
Phil Bruns, Agent, West Chester, OH
Sun Jan 27, 2013
Hi Kimberly
YES, but not all foreclosed homes are on the market. The foreclosure process is a long legal process that takes time. The purchase of a foreclosed home is similar to any other home, but sometimes there is special paperwork, and most times there is work to be done on the home. Sometimes that work is minimal, other times it can be daunting. As mentioned in my previous note, I would be glad to help you with it, I just made an offer on a foreclosed home my self today! Hope to talk soon.
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