Can anyone tell me what is the procedures for buying a foreclosed home?
I’m thinking about buying a foreclosed house but I don’t know where to start..
the EASIEST way;
call 3 RE offices and on the phone or in person, interview
one or two agents in each office that are experienced at being
BUYER’S AGENTS ONLY;
NEVER EVER ACCEPT dual agency–even if permitted in your state.
IT IS impossible to get as good a deal with dual agency as
with your own buyer’s agent or even better, an exclusive buyer’s agent!
let your agent show you the houses you are interested in
[after you are financially qualified] and write your contract and
negotiate for you!
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June 22nd, 2010 at 8:08 am
the EASIEST way;
call 3 RE offices and on the phone or in person, interview
one or two agents in each office that are experienced at being
BUYER’S AGENTS ONLY;
NEVER EVER ACCEPT dual agency–even if permitted in your state.
IT IS impossible to get as good a deal with dual agency as
with your own buyer’s agent or even better, an exclusive buyer’s agent!
let your agent show you the houses you are interested in
[after you are financially qualified] and write your contract and
negotiate for you!
References :
RE broker
June 22nd, 2010 at 8:23 am
Procedure is the same. The only difference being you buy the house as is. Unlike a private seller who might be willing to make some repairs the bank will not.
Go to a realtor in the area you are interested in, since that is where the lenders list the homes for sale.
References :
June 22nd, 2010 at 8:32 am
A foreclosed home is owned by a bank, likely listed with an agent/brokerage that specializes in REOs (bank-owned homes). You can get an idea of what is available in your market by looking on Realtor.com, but hire an agent you trust to help you look and represent your interests.
Most REOs are sold as-is, and most likely they’ll be in poor condition and in need of work. If you have cash to purchase with, then you’re in a good spot to find a deal, but buyer beware!! Make sure you have a good agent, do full inspections, and consult with contractors before you finalize the purchase. Hidden damage is not uncommon, so if you don’t have a budget for repairs, be very cautious.
If you are working with a lender, find out what condition the home must be in to qualify for the loan. FHA in particular will appraise the home and look for problems such as poor roof condition, no heat, broken windows, no cooking appliances, etc. If the home won’t qualify by the lender’s standards, then they won’t loan money on it.
When you submit an offer to the bank, it may take a few days to get an answer or weeks. Often they’ll set the terms on when you’ll close escrow and charge a daily penalty if you don’t close on that exact date.
References :
http://www.getREadvice.com