Question on buying pre-foreclosure

PhxGuy520 · Joined: 08 Aug 2006 Posts: 38

Ok I just subscribed for a trial of a service called realtytrac and it shows foreclosures and pre-foreclosures. I have a question.

In order to buy a home that is in foreclosure or pre-foreclosure would I have to have enough cash to payoff what the person is behind on first? Is there ever a way to buy these with 100% financing?

Does anyone have an feedback on this site?

Does anyone have a sites with good information on buying these types of homes?

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

Quote: In order to buy a home that is in foreclosure or pre-foreclosure would I have to have enough cash to payoff what the person is behind on first?

Well, keep in mind the steps you're talking about here. If you're buying in pre F/C then chances are yes, you're going to be paying the amount that is owed, potentially more. If you buy after it's been through F/C, then potentially not. There's more negotiation there because banks are not going to want REO's sitting there holding up their cash. That being said, don't expect them to take a 50% loss just because you want to capitalize on there loss.

Quote: Is there ever a way to buy these with 100% financing?

Sure. Your financing isn't necessarily contingent on it being a f/c or not. Of course, if the home is trashed (and i don't mean walls with holes or rooms shot up. I mean a leaky roof that caused mold and couldn't be fixed, etc.) you may have to have money set aside for repairs even before you buy it. Sometimes the repairs have to be made in advance. Unless of course, you're paying cash.

Or, you can get a renovation loan. Those are pretty much the only two options in those cases.

What is a renovation loan you ask? I'll post one of these days about them ;)

PhxGuy520 · Joined: 08 Aug 2006 Posts: 38

You are awesome. Always so quick to answer. Ok maybe you can give me a idea. I am looking at a house that would be everything I want. The exact area of I want, a pool and the square footage. I would guess the apprasial would be around 380k. The loan balance is showing 133k. The status is showing "notice of default" would it be crazy to expect the person to sell it for 285k? The area is pretty new so the home cant be older then the late 90's. Sure they could have trashed it, but lets assume they didnt.

By no means would I want to take advantage of someone, but if I can help them out and secure the best deal possible at the same time why not. Unless I am missing something this person would be out of a bind and still walk away with over 100k more then they owe.

chow · Posted: Mon Sep 25, 2006 11:40 pm Post subject:

Federal forclosures are listed in the following places:

http://www.hud.gov/homes/index.cfm

We have a list by state, and then there is a link on the right side of the initial page for other agencies:

http://www.hud.gov/homes/homesforsale.cfm

PhxGuy520 · Joined: 08 Aug 2006 Posts: 38

PhxGuy520 wrote: You are awesome. Always so quick to answer. Ok maybe you can give me a idea. I am looking at a house that would be everything I want. The exact area of I want, a pool and the square footage. I would guess the apprasial would be around 380k. The loan balance is showing 133k. The status is showing "notice of default" would it be crazy to expect the person to sell it for 285k? The area is pretty new so the home cant be older then the late 90's. Sure they could have trashed it, but lets assume they didnt.

By no means would I want to take advantage of someone, but if I can help them out and secure the best deal possible at the same time why not. Unless I am missing something this person would be out of a bind and still walk away with over 100k more then they owe.

Sorry I guess I never asked my real question. Using the example above my brain tells me they would never take that as they could put it on the market for 300k and I would assume it would sell right away being 85k less then the same houses in the area. But then again I am new to this and might be making it too simple. Maybe there are variables I am not thinking of that would make someone jump at my offer??? Thanks again!

Jenie0109 · Joined: 27 Jan 2009 Posts: 307 Location: chicago IL

hello there., i dont know if this can help you, try clicking the sig below if you want advice regarding loans and foreclosure issues. thanks.