No experience whatsoever with buying a house. How does it work to buy a foreclosed house?

I really want to buy a fixer upper to remodel it the way I want it. So I was looking into foreclosed homes online.
Can anybody explain to me how I buy these from a bank? Do I bid on it or is the price on website final? How long does it take to buy a house from a bank?
(1) | asked by: Steffen Liebenow | share | 22 months ago | Report
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answer by Elizabeth Russo    |   Contact Me
If it's not listed for sale, it's going to take you a long time to convince the bank you're ready to buy for the value they're going to ask.
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22 months ago  |   Report   |   share
answer by Taimi Guillot    |   Contact Me
1. Get preapproved for a mortgage, unless you intend to purchase with CASH. 2. Find an agent specializing in foreclosures. 3. Know how long it takes to sell a home in your price bracket. 4. Study the sale prices of comparable homes in your area. 5. Remember the sale for the home is "AS IS".
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22 months ago  |   Report   |   share
answer by Michael Balanoff    |   Visit My Website   |   Contact Me
Thanks for reaching out, Steffen, and congrats on your decision to purchase a new home! It can be very gratifying to fix up a home that needs work and customize it into the home of your dreams. There are many lenders that specialize in financing these type of homes by rolling in the repair costs into your mortgage so you do not have to come up with the cash for renovations up front. Get with a local Realtor to explain the process to you in depth, but basically: get pre-qualified for a mortgage, visit the home with your Realtor, and then if you want to move forward write an offer. Simple as that! For auction properties, the process is a little different than other bank-owned properties, so check with your Realtor for specifics. The price on the website is certainly not final. It could be listed below market value in order to entice multiple offers, or it could be listed higher than market because the bank is expecting buyers to beat them up on price (submit lowball offers). Again, just check with your Realtor! Typical closing time in the Tallahassee area is approx. 45 days. Most banks want to close in less time than that, and depending on several factors you could close sooner. Good luck with your home search! Feel free to reach out if I can provide any more info...thanks again for reaching out!
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22 months ago  |   Report   |   share
answer by Lilo Clacher    |   Visit My Website   |   Contact Me
Hi Not having any experience in buying a home, it would be best for you to hire an experienced Real Estate Agent. Your agent will know all the foreclosure sites and will be able to assist you in filling out the paperwork correct. No room for errors when you deal with the banks. Best of luck to you
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22 months ago  |   Report   |   share
Steffen, if you are looking to buy the home as a primary residence, you can leverage your money and use the banks money for the renovation and I'd be happy to help you with this. Feel free to reach out to me.
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22 months ago  |   Report   |   share
answer by Carole Meinertz    |   Visit My Website   |   Contact Me
Once the bank owns the property it is usually fairly straightforward. One buyer, one seller. Most bank-owned properties require a licensed realtor to submit the offer as there is an online website for submitting said offers and it can only be accessed by licensed realtors. Buyers need not shy away from contacting a realtor; there is no cost to the buyer since the seller always pay the commission. The published price is not always the bottom line and if you make an offer lower than asking price the bank can and frequently does counter. Beware of websites that claim they have lists of foreclosed properties and ask you to pay for access to those lists. First of all these properties may be in pre- foreclosure but that does not mean that they have been listed for sale by the bank yet. These websites who want to sell you the lists of distressed properties simply go to the courthouse records and list homes with notices of intent to foreclose. Notice of LIS PENDANS, which simply means intent to foreclose, is the bank's first step. From there it can be several months or more before the actual Notice of Judgment is awarded to the bank. Once the bank has final judgment, then and only then will it list the property for sale. I hope this answers your question!
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22 months ago  |   Report   |   share
answer by Alma Kee    |   Contact Me
If you have cash and are a risk taker you can buy at the courthouse foreclosure sale. You must pay ALL CASH and cannot enter the property to inspect not get a title insurance policy that ensures the title is free and clear of any liens. You need to do a lot of homework before bidding do if you're a rookie this may not be the best route. If you need to borrow money to buy the property then you must buy AFTER the foreclosure auction when the property is listed by a local Realtor. Banks DO NOT typically sell to individual buyer's directly--possibly if you were buying a multi-million $ portfolio of homes but certainly not just one property. We still have MANY ALL CASH buyers that are looking for bargain properties do if you cannot pay ALL CASH you will be at a severe disadvantage competing for bargain properties. Many of the "foreclosure" properties listed on websites are not actually available to buy, they are just in the preliminary foreclosure process. If you are planning to occupy as your primary residence and can pay ALL CASH then you will have an advantage on certain properties that are ONLY available to owner-occupant buyers for the first week or two listed. If you cannot pay ALL CASH you can get a Renovation Mortgage to include costs to fix it up but the renovations will need to be done by a licensed contractor, not diy unless you are duly licensed. One thing to consider is if there are serious condition issues that will prevent the house from passing an Insurance Company required 4 point inspection is you will have to get VERY expensive builder's risk insurance. This extra cost may disqualify you from getting the mortgage if thou are already close to your max borrowing limit. Some REOs are sold via an online auction with some of the listings will allow a buyer to get a conventional mortgage and close in 25 days. You have to select a competent lender so you don't pay penalties for closing late or listing the property. Find an experienced Realtor you trust and she can help. Note: some REOs may only offer a third of the typical commission so you may need to compensate your realtor for the loss in her commission. All the best, Alma Alma Rose Kee Future Home Realty
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22 months ago  |   Report   |   share
answer by Dao Alderman    |   Contact Me
it would not take longer than 45 days to close a REO properties in most cases if the properties are purchased with cash or the mortgage finance has been in place ready for closing.
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22 months ago  |   Report   |   share
answer by Dao Alderman    |   Contact Me
Work with an experience realtor who is comfortable in handling the bid auction process, and the administrative tasks in the real estate transactions.
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22 months ago  |   Report   |   share
answer by Dao Alderman    |   Contact Me
Work with an experience realtor who are comfortable with handling of auction bids and administrative tasks in the transactions.
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22 months ago  |   Report   |   share
answer by George Leone    |   Contact Me
Find yourself a reputable Real Estate Agent and He/She will be happy to help youNo, the price on the website is not final, you can make an offer. But, make sure you see the home first to find out what, if any repairs are needed, what appliances , if any , are needed.
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22 months ago  |   Report   |   share
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