First off, take a look at the website I've listed. It is one of the best resources I've found for first time buyers and it walks you through the entire process.
Most sales of properties in the foreclosure process are done as "short sales", which is where the lender will accept less than the total mortgage owed to them, and the seller can avoid the actual foreclosure. The biggest difference is that offers need to be agreed to by the bank that has the mortgage. This can take days, weeks, even months. Sometimes the buyer of a foreclosed property will be required to pay for things normally handled by the sellers, such as the survey.
You can also buy a foreclosed property at a sheriffâ€™s auction, but I wouldnâ€™t recommend that for a first-time buyer. If a property has gone to auction, the bank usually buys it back and relists the property (bank owned). This works like a regular sale, except you are buying the property from the bank itself.
The property you listed is in â€œpre-foreclosureâ€, meaning the lender has started the foreclose process due to non-payment of the mortgage. The amount shows is the outstanding balance of the mortgage, and not the actual list price of the property.
Iâ€™ve helped first time buyers buy foreclosure properties (in Aurora), and Iâ€™d be happy to answer any questions you have and help you out!
Daniel & Associates Real Estate