Re: how do I buy a foreclosed property?

Posted by Keith(CA) on November 30, 2004 at 10:01:14:

In Reply to: how do I buy a foreclosed property? posted by Big O on November 29, 2004 at 15:17:34:

No tricks, really, to buying a home already foreclosed. If someone (a private party) bid at auction, then they now own it and you would have to approach them about purchasing. Otherwise, if the bank took title for lack of a bidder at auction, then speak to the bank. But don't be surprised if the bank simply lists the property for sale through a real estate broker.

Either way, it will still be treated just as a normal sale. You obtain financing (some combination of personal, private, and/or bank financing) and go through escrow if your offer is accepted. The closing attorney/title company will see to it that outstanding liens are paid off from the financing you obtain. Thus, you will get clear title to the property (likely a requirement of the lender from whom you obtain your financing).

The only trick would be if you lived in a state where the owner is given a redemption period by law. In this instance you may be able to purchase the redemption right from the former owner and exercise that right before the time period expires. But we don't know what state you live in.

Does that help or answer your questions?

: how do i buy a foreclosed property? do i need to use only my own money or can i get a bank loan? if i buy a foreclosed property, what is my financial responsibility to the outstanding mortgage?

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Comments:
: No tricks, really, to buying a home already foreclosed.  If someone (a private party) bid at auction, then they now own it and you would have to approach them about purchasing.  Otherwise, if the bank took title for lack of a bidder at auction, then speak to the bank.  But don't be surprised if the bank simply lists the property for sale through a real estate broker.

: Either way, it will still be treated just as a normal sale.  You obtain financing (some combination of personal, private, and/or bank financing) and go through escrow if your offer is accepted.  The closing attorney/title company will see to it that outstanding liens are paid off from the financing you obtain.  Thus, you will get clear title to the property (likely a requirement of the lender from whom you obtain your financing).

: The only trick would be if you lived in a state where the owner is given a redemption period by law.  In this instance you may be able to purchase the redemption right from the former owner and exercise that right before the time period expires.  But we don't know what state you live in.

: Does that help or answer your questions?

: : how do i buy a foreclosed property?  do i need to use only my own money or can i get a bank loan?  if i buy a foreclosed property, what is my financial responsibility to the outstanding mortgage?


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