Common Questions About Foreclosures, and REO's(Real Estate Owned)

What is a foreclosure and REO's?

Properties on which the owners have gotten behind in their payments and could not bring the loan current. At that time the bank forecloses on the current owner and takes the property back via foreclosure. At this time the bank will try to sell the home at the Court house step via Auction which very few are successful doing so since the starting bid is usually the minimum loan balance any accrued interest, plus attorney's fees and any costs association with the foreclosure process. If you are the successful bidder, you receive the property in "as is" condition, which may include someone still living in the property and any additional liens against the property. If the property fails to sell at the Court house steps via auction, it then gets assigned to one of their asset managers that over see the asset(Property) to be listed with local Real Estate Brokers to sell the property as a REO listing(Real Estate Owned by Lenders).

How can I save money buying a foreclosure?

Buyers consider foreclosures in the hope of buying a home under market value. A good foreclosure specialist will help you find the best deals in your price range.

Are foreclosures available in my price range?

In the current market situation, foreclosures are available in just about all price ranges.

It's a foreclosure - what's wrong with the house?

Sometimes nothing or there may be some deferred maintenance items or possibly costly repairs are needed. A good foreclosure specialist will advise home inspections.

Can I get financing on a foreclosure?

Absolutely but not all are available for FHA financing guidelines! Unless you're thinking of buying at the courthouse where a cashier's check for the purchase amount is required. Your foreclosure specialist will help and guide you to find the qualified properties that are approved for your financing needs and provide information to your loan officer.