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How does foreclosure work on a home?

Are there any websites that you can view foreclosure homes? Is there a downment required for these type of homes and would you still have to go through a bank as well? Any information on this subject would be helpful.

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Asked by Anonymous at 1:53 AM on Jul. 2, 2012 in Home & Garden

Answers (5)
  • I don't know of specific websites, but I'm sure they're out there. There is generally still a down payment required, you have to get a new loan, you aren't taking over the previous owner's loan, and unless you have cash to buy the house, you will have to go through a bank or other lender for the loan, and you will have to qualify.

    Since the housing market and bank crashes of a few years ago, they have tightened up qualifications. You need to have a good solid credit score, and they were doing no money down loans, but I'm not sure they still do, you would have to call a mortgage company (bank) to find out.

    Prices are good right now and so are interest rates, so if you're in the position, it's a good time to do it. Good luck.

    Answer by ohwrite at 9:11 AM on Jul. 2, 2012

  • There are bank owned homes/short sales and then there are also auctions. Either one still requires either cash at time of purchase or a bank loan. You would need to be approved for a loan and know how much before you could bid or put in a offer. The down side of foreclosed homes is that they are sold as is. There is no negotiation on the condition and no repairs are made pre-sale. Many foreclosed homes have been destroyed or neglected by the previous owners so be careful and even if your loan doesn't require it pay for an inspection. You can contact any loan agency and Realtor to get more details and suggestions. It should not cost you to apply for a loan or to talk to Realtor about your options and you will get better answers that way.

    Answer by But_Mommie at 9:13 AM on Jul. 2, 2012

  • My husband has been working with foreclosed properties for the last 5 years, although we're in Nevada and the process is a little different from state to state. Yes, they require a down payment. Also, many are not able to be financed at all, so it would have to be a cash purchase. Houses that have been destroyed or stripped by a previous owner won't pass certain requirements to allow for financing, which is something we run into a lot of the time here. Also, when you make an offer on a bank owned property, they will usually have more than one offer, but they won't tell you how much the other offers are. We bought our house as a foreclosure, and they just told us that there were multiple offers and we had to submit our "highest and best", which ended up being $15,000 over the asking price. I don't know how much the other offers were.

    Answer by JulieJacobKyle at 12:21 PM on Jul. 2, 2012

  • Call 211 and ask them for the program assisting people through the foreclosure process.

    Answer by booklover545 at 4:19 PM on Jul. 15, 2012

  • there are also auctions.

    Answer by GlitteribonMom at 11:36 PM on Aug. 21, 2012

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