How do I look into buying a foreclosed home? ?

Question

I would like to look into that as an option. My boyfriend and I have been told that you can often get them cheaper and obtain a home loan easier since the bank wants to get someone asap. Is any of that true? Is it really a good way to go?

Answer 1

You cannot "obtain a loan easier."  However, many are aggressively priced by the banks.  Find a realtor that handles REO properties.

Answer 2

Before you and your boyfriend by a house together make sure you make a written agreement between the two of you.

Now, I know that everything is rosy now and you think that this feeling for each other will go on forever.

I am looking at the time when things might not be so rosy and one of you are at the point of moving out and the other is stuck with a mortgage the both of you agreed to pay.

Purchasing a foreclosed property is not a bad idea. There are bargains to be had.  You have to decide on which end you want to purchase the foreclosure.

You may purhcase a pre-foreclosure which requires a little reading on your part to educate you about what need to be done and how to go about it.  You may purchase a book on the purchase of foreclosures from your local book store. You might also look under flipping and selling foreclosures. You might not want to flip a property but these type books will give you many ideas on how to purchase a foreclosed house.

You may purchase a foreclosed house at the foreclosed auction, again this requires a bit of knowledge on your part. You will also find information about buying at the auction in the books you purchase.

The other way is direct from the bank or lender that did the foreclosure. Most of these banks and lenders normally farm this chore out to real estate brokers. So you might look up one in your city that sell foreclosed propertities direct from the bank. These brokers list these properties on the Multi-Listing-Services (MLS)

It is better if you get pre-approved by a mortgage company to purchase a property and not seek a loan from the bank/lender that you are trying to buy a house from. Once you contact a real estate agent to puchase a property either a foreclsure or one of their normal listing they will want you to be pre-approved, if you are not pre-approved they will want to get you pre-approved.

R.E.O. means Real Estate On Hand this is the property that a lender has on his/her books that this particular lender has foreclosed on. Each lender has his own REO list. This might not be available to the public.

M.L.S. means Multiple Listing Service a service utilized by real estate agents to share listing information so all real estate agents have assess to the same information about a property listed for sale on a daily basis.

I hope this has been of some use to you, good luck.

"FIGHT ON"

Answer 3

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Answer 4

So many people seem to think that foreclosures are the golden ticket to finding a great home at a cheap price. However, this is rarely true. A home forecloses because the homeowner couldn't afford the payments. Typically, they also haven't been able to afford and do the proper upkeep on the house as well. Due to this, in most cases, a foreclosure isn't in great shape and usually needs quite a bit of work (read: money). However, if the house is in good shape and a priced at a lower price, there is usually always a bidding war on the home and it usually sells for about what it would if it wasn't a foreclosure and was just placed on the market as normal. So many people know someone who has gotten a great deal and bought a fabulous house as a foreclosure, but in reality this actually happening is few and far between. Now, foreclosures are great for investors who have $50-$100k to fix it up and flip it, but for the average person I'd just suggest getting a good real estate agent - he or she can show you foreclosures too.