How do I purchase a foreclosed home in my neighborhood?

How do I purchase a foreclosed home in my neighborhood?

1 Answer

A qualified real estate professional can help.  You may have a close friend or relative in real estate, but if that person doesn’t know anything about short sales or foreclosures working with him or her could be a frustrating.

Find a local Realtor in your area, that is qualified he or she has access to the bank own properties via the MLS.  Bank owned properties are listed on the MLS your Realtor is a member of the MLS.  Are you looking to buy a new home? Are you thinking that now's a great time to find bargains? Before you make an offer, it pays to know a little about the seller's situation.

I thought this might be able to help you understand the difference between foreclosed property and short sale.  If a home is being sold for below what the current seller owes on the property—and the seller does not have other funds to make up the difference at closing—the sale is considered a short sale.

A short sale is different from a foreclosure, which is when the seller's lender has taken title of the home and is selling it directly. Homeowners often try to accomplish a short sale in order to avoid foreclosure.

But a short sale holds many potential pitfalls for buyers. Know the risks before you pursue a short-sale purchase  You're a good candidate for a short-sale purchase if:

  • You're very patient.

  • Your financing is in order.

  • You don’t have any contingencies.

 If you have a home to sell before you can close on the purchase of the short-sale property—or you need to be in your new home by  a certain time—a short sale may not be for you. Lenders like no-contingency offers and flexible closing terms. If you're serious about purchasing a short-sale property, it's important for you to have expert assistance. Here are some people you want to work with:

  • Experienced real estate attorney.  A real estate attorney is essential throughout the negotiation 

  • A qualified real estate agent.

Good Luck!!