General Question

loveurmindnsoul's avatar

What should I know if I want to look for foreclosed houses?

Asked by loveurmindnsoul (378 points ) June 15th, 2009

I’m not serious about buying one now, just in the far future. I’d just like to know what I should learn and be prepared. Thanks

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7 Answers

YARNLADY's avatar

Work with a knowledgable real estate agent who specializes in foreclosures. That way you have good advice for all the things to watch out for.

Be prepared to wait a long time for the bank/lender to make a decision. They usually wait until they receive several offers before making a decision.

basp's avatar

Be sure to do your homework. Typically, if you purchase a foreclosed house, you are responsible for any leins on it. Also, it helps if you have either a large down payment or cash to leverage the sale.

marcosthecuban's avatar

expect resistance from lender if the deal requires they take a haircut- don’t take that element for granted. first questions to ask is has lender blessed a short-sale and at what price?

many owners will advertise short sale or foreclosure sale but the mortgage holder has not approved the asking price. also, keep in mind that almost all mortgages are sold- so the ‘servicing bank’ isn’t likely to be the decision maker on the haircut.

loveurmindnsoul's avatar

What is a short sale?

YARNLADY's avatar

@loveurmindnsoul If you have to ask such a basic question, I urge you not to go into this without a professional agent working for you.

A short sale is when the lender agrees to sell the house for less than the seller owes on it. If the current loan balance is $225,000 and they agree to accept $200,000, that is a short sale.

loveurmindnsoul's avatar

Thanks @YARNLADY Yea, I’m going to the library today and picking up some books like house buying for dummies. Do you have any books/blogs or reading that I should check out?

Some websites that I have been using to look at real estate housing is trulia.

YARNLADY's avatar

the library is a good place to start, for some basic information, but be aware that the real estate laws, regulations and practices change yearly, so check the publication dates on the sources you use.

My advice is to go to a real estate class at junior college, or visit your local real estate office.

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