We want to buy a foreclosure for our permanent residence. We cannot afford double house payments. What are the requirements and money required to?

Asked by gbanks222, Oklahoma City, OK Wed Jun 11, 2014

purchase a foreclosure?

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Josh Barnett, Agent, Chandler, OK
Fri Jun 13, 2014
Give Kurt Swink a call at 722-5626 and discuss options. Tell him Josh sent you.
0 votes
Dan Tabit, Agent, Issaquah, WA
Thu Jun 12, 2014
Gbanks,
Thanks for the clarification. There is no clear cut way of doing this for certain. A bridge loan, may be possible. You'd have some double payments depending on how fast you sell your home.
If you qualify for both mortgages, you can write the offer requesting a very long closing period and get yours on the market right away. When you're trying to do this, you can't be too greedy and expect to buy the foreclosure at the bottom and sell yours at the top. Price your home to reflect your real motivation and focus on what you're gaining in your purchase rather than what you "may" give up on your sale.
I've done this myself and helped others do this too. It can work, but everything must be done perfectly and there are NO guarentees.
Find an outstanding agent to get yours on the market and make the home shine.
0 votes
Yanoska Diaz, Agent, Miami, FL
Thu Jun 12, 2014
The purchase of a foreclosed home is very similar to any other. I am assuming you are attracted to a foreclosure sale because you feel you will be getting a better deal on a property. Well, that is not always a fact. Bank owned properties often sell higher than regular sales, banks and other institutions have adopted repairing foreclosed homes to price at fair market value.

To answer your question, if the foreclosed home is in repaired condition and offers no title issues, the financing requirements, including your down-payment will be the same as in a regular sale.
0 votes
Dan Tabit, Agent, Issaquah, WA
Wed Jun 11, 2014
Gbanks,
You've fallen under the misconception that a foreclosure is automatically a "good deal". Some may be, but many are not. There are two ways to buy a foreclosure, one is speculation and incredibly risky and the other is buying a listed property.
Buying at auction requires 100% cash or a presetup, short term, high rate, hard money loan. You do not get to preview the homes at an auction, you don't get to inspect them, request repairs or give them back if you buy a bad one. This is only the beginning of the risks involved. You'll be competing with full time experienced professional investors who will gladly let you over bid a home they don't want to buy, to get you out of the way for the ones they do.
Buying a home that has gone through foreclosure and is listed with an agent is a more conventional process. These homes can be viewed, inspected and if necessary work can be done if required by your inspection. Conventional financing can be used too. You'll still have to compete with other buyers looking in that price range, and the banks who own them still want top dollar.
My suggestion is, especially if you are looking for a primary residence, find a great local agent with experience with all types of properties, including bank owned, and consider ALL the available inventory. Sometimes a regular home can be as good or better deal for you than a foreclosure, but if you don't consider everything, you'll miss it.
0 votes
No, I'm not that misconception. I'm asking how to secure the home I've selected until I can sell my current home. Does it require a contract that can be effective for payment after my home is sold? Can there be a bridge loan that doesn't require double house payments? Are there other procedures we can take?
Flag Wed Jun 11, 2014
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