We are interested in purchasing a property that appears to have gone back to the lending agency.

Asked by E&t, Pittsburgh, PA Tue Jan 22, 2008

question is: In such a situation, is seller assist possible? We will need a bit of assistance with our downpayment and were wondering if this ever happens? Thank you very much!

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Crystal Alfo…, Agent, Pittsburgh, PA
Tue Jan 22, 2008
I've sold many bank owned properties and they do allow seller assist, however, the mortgage company is the one who dictates how much you are able to use. Different loans have different restrictions on seller contribution and, as Frank said, a Realtor will know those limits.
HUD (Dept. of Housing and Urban Development) listings give buyers an opportunity to purchase with up to 6% seller contribution, but you still need to have some money on hand for closing. Also, you should be prepared to have money set aside for repairs that HUD will require. HUD listings in our area are listed on http://www.hooksvanholm.com.
Best advice, however, is to find a Buyer's Agent...it's no cost to you, in most cases, and you'll have a professional working on your behalf to guide you through the process.
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Frank Bigans…, Agent, Newport News, VA
Tue Jan 22, 2008

If you’re saying that the home was foreclosed upon, and you need down payment assistance, then this home is probably not for you. You can obtain a list of HUD homes by visiting this websites, but HUD homes still require 3-5 percent down payment.

Depending on your price range and local market, you should consider contacting a Realtor and discussing your needs in detail. Many sellers in my area are providing several thousand dollars in closing cost assistance to my buyers, and some have actually received a few hundred bucks back at the closing table.

One would always need to place a good faith deposit when submitting an offer. This could be as little as $500, or one percent of the purchase price. Again, contact a Realtor as they know they market best and can put you in touch with a lender who can discuss creative financing options with you.

Frank Biganski, Realtor ABR
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