is looking at foreclosures a easier process then buying a regular home? There cheaper so the morgage should be cheaper right?

Asked by Jill Dushkevich-Simone, Milltown, NJ Mon Dec 30, 2013

sorry i am not familiar with home buying and cant afford the heavy downpayment

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Moretti Team, Agent, South Plainfield, NJ
Tue Dec 31, 2013
I hope that our previous answer was helpful. Please reach out to us so we can chit-chat. We can be reached at 908-912-5295.
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Mary Petti, Agent, Edison, NJ
Tue Dec 31, 2013
ALL good answers below. To add to their comments, I want to make sure you are referring to true foreclosures (totally bank owned properties) as opposed to short sales (current owner still has possession of the home but owes more on their loans than the home is worth in the current market).

Foreclosure properties and short sale properties can both be a long process to close. They are not always "cheaper". There are foreclosures and short sales from $20,000 to over a million dollars. It's all about the owners (deed holders) financial situation and how much the lenders (or tax assessors etc) are owed.

Mortgage RATES do not vary or get cheaper because the home is a short sale or foreclosure, but of course you are correct in that a less expensive purchase price makes for a less expensive mortgage payment. Bear in mind though that morgage payments included what is referred to as PITI: P= principal , I = Interest, T = Taxes (property) and I = Insurance (monthly homeowners premium)

Additionally, not being able to afford a "heavy downpayment" tells me you you don't have a lot of cash on hand and should probably look for a home that is NOT a foreclosure or a short sale. BOTH types of sales are typcally sold AS IS, meaning no one will make an needed repairs to the property after you complete a home inspection. (which the buyer payus for out of pocket and is not reinbursible) This can be an added expense to you that you may not be able to afford.

Have you spoken to a qualified mortgage lender about what you may be able to purchase based on your salary, income and debt? You might qualify for an FHA loan with requires only a minimum of 3.5% down payment.

Buying a home MAY seem complicated, and in a sense it is, BUT if you work with a competent and knowledgable team of people including your Realtor, attorney and lender, they can talk you through the process and make it that much easier.

Feel free to comtact me directly at 908-675-0167 or email me at I would be happy to answer any questions you have and explain the buying process to you in more detail.

Have a happy, healthy and propserous 2014 !! Look forward yo hearing from you soon :)
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John Sacktig, Agent, New Jersey, NJ
Mon Dec 30, 2013
Hi Jill,

Exactly the opposite. Foreclosures and short sales can be a tough road. You will need to be preapproved (and by the sounds of it, you may be looking at an FHA loan) there will be tougher guidelines in attaining a mortgage. On top of that, the homes are usually As-is, meaning there may be issues within the home that the bank(s) will not repair, replace or fix.

You would probably be best off in looking at homes that are for sale within your price range, speak with a mortgage person and see what you are qualified to purchase and take it from there.

Be sure to speak with someone local, Real Estate is local and you should speak with an agent that knows the local area and homes that are for sale. I am an expert in our local area, email or give a call and I will put you in touch with a mortgage representative in the area to discuss what you can actually purchase. We can and will look at some short sale or foreclosure properties, but I think you need to see what these are and understand the process and inventory in the area.

Give a call or email!

John Sacktig
Orange Key Realty
Direct: 732-213-1409
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Moretti Team, Agent, South Plainfield, NJ
Mon Dec 30, 2013
Thank you for reaching out to us on With regard to looking at traditional inventory or foreclosures, one is not necessarily easier than the other. The difference between the two are vast. It sounds like you are a potential first time home-buyer. We would be happy to sit down with you to explain the home purchase process. The more educated you are with the process, the more comfortable you will feel and will better understand the difference between traditional and foreclosure properties. In addition, we will be able to assist you with where you stand within the marketplace and what you can afford. Feel free to reach out to us personally so we can talk more in-depth about your specific real estate needs and wish list. We can be reached at (908) 912-5295 or via email at We look forward to hearing from you soon.
0 votes
we bought a home in 2007 and short saled in 2009 due to issues with the bank of America and countrywide split. we have been renting ever since
Flag Fri Jan 3, 2014
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