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29 Jun

How does it work to buy a foreclosure?

General

Posted by: Joel Olson

From time to time their may be a foreclosure that comes on the market that may be of interest. They are a little different, than purchasing a regular property.

The lender will always want an appraisal- if you are putting less than 20% down, the mortgage insurer may order and pay for it- but if not you will need to have us order you an appraisal. The value is very rarely a concern. The lender is looking at the condition of the property, and should it be in poor condition or need lots of repairs they may decline to finance it, even if you are a very good borrower.

Once your offer is accepted and conditions are removed, a court date is set, once a court date is set, you will have you offer accepted in court and a court order can be prepared. However, in court there is allowed to be other bids, and if someone else bids higher, they will be able to have the house over you. It is a good idea to be prepared to increase your offer in court- you need to check with us before, and the offer should still not exceed your appraised value. If you need to increase your offer, but are not sure you can approved for the difference, you can do so, but you need to make sure you can pay your increase in cash. Its also important to know that even if you can afford a higher amount of payments, a lender will still not finance you for more, if you bid above the appraised value.