Buying a foreclosure ?

Question

I want to buy a foreclosure thats a recently built home. It says that the loan balance is $4827. Is that all I have to pay because if it is it it seems too good to be true.

Answer 1

There are 2 loans on the house. The 1st loan is $160,000.  The 2nd loan is $4,827.  That is all you have to pay.  But you will owe the mortgage payment on the 1st loan when the next payment is due.  If there are any back payments (there are) you would owe them too.  

Run for the hills. /

Answer 2

That's not the loan balance.  That's the amount the current owner is in arrears.  This home, like other foreclosures, will be sold at the highest price possible.  If the house has a market value of $200,000, don't expect it to be sold for much less than that.

Answer 3

Clarify.  Are you trying to buy a REO (house that has been taken back by the lender) or a house on which foreclosure is pending?