BUYING FORECLOSURES HELP PLZZ

It depends on whether you are trying to do a short sale or going to the foreclosure auction.

For me:

- My last foreclosure purchase was found through the HUD.gov website.
- I had to locate a HUD real estate agent (listed on their site).
- Made a offer at $49k on a $63k list price, and that they would contribute $2500 toward my closing costs.
- Once accepted, I had to provide $1000 earnest money as a cashier's check.
- The contract is NOT assignable, and it clearly states that.
- I was able to use financing contingency but not inspection. Had to sign off stating I was buying it "as is".
- 30 day close.
- Obtained purchase + rehab financing through a local bank.
- 45 days to close due to HUD - they're slow!

Hope that helps,

Tom

Just wanted to add - as Jim stated above - it depends on the type of foreclosures you're going after. My posting covered a bank owned foreclosure (REO). But I did go through the whole process start to finish so hope my details help out!

- Tom

Do you have any of Dean's Books. If you do I can tell you what pages to read insted of writing it all here.

Steve

Thank you TDSPropertiesVT it really do help to read everything in order..
it really doesn't matter if is a HUB or a short sale. some people just need to read the one, two, three, step of the process for them to understand all phases of a foreclosure. i really need some processing stories to get myself and others push to start on the process of investing.

i really appreciate DG family knowledge
I thank you so much.. hope to hear about more process of foreclosures

Thank You

There is a big difference in short sell and buying a REO. A short sell is a pre-foreclosed home. A REO is a bank owned home that has been foreclosed on.

Steve.

Akator - you're welcome! Feel free to ask any further questions.

Tom

TDSPropertiesVT so once you bought the property how soon can you resell it again? or if you're buying a HUD home you can only live in it or rent it out?

It is important to realize that foreclosure is a process not a single event. First a borrower that is behind on house payments is given a demand letter, or put on notice that they are not complying with the loan agreements they signed namely not making their payments.

Artem.Troy - for the HUD foreclosure I bought, there was no minimum holding time before I could resell. However, that's specific to each property and it will say it right on the contract. Many have 90 day holding period before reselling, or if you sell within that 90 day period, not for more than a 20% profit over what you paid. Again, it will be in the contract and many times right in the listing. Unfortunately, with HUD they are not generally flexible with their terms - using their contracts for the offer.

Why go through them then? Because they have lots of inventory and will slowly drop the price every few weeks. This one started at $110k, went down to $63k a few months later, and they accepted $49.9k (it did appraise after some renovations at $115k).

Finally, you don't have to live in the home. They will only accept offers from owner-occupants for about the first 15 days, then open it up to everyone.

- Tom

Thank you tom. This is Really helpful.. Thank You