Do you have to pay cash to purchase a foreclosed home?

(0) | asked by: Denise Michael | share | 15 months ago | Report
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answer by Corey Fitzgerald    |   Visit My Website   |   Contact Me
Great question! It all depends on what your lender says after the inspection. If the home passes the inspection you may be approved for a loan to purchase! Good luck!
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1 month ago  |   Report   |   share
answer by Betty Granucci    |   Visit My Website   |   Contact Me
Much of it depends on the condition of the homes, and whether or not it will qualify for financing. In Florida, if a home does not successfully pass a 4-point inspection, you cannot get insurance, and therefore, you cannot get the financing.
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1 month ago  |   Report   |   share
answer by David Maurer    |   Visit My Website   |   Contact Me
Not necessarily. The listing agent usually specifies what types of financing if any will be considered by the seller. And that info is listed in the MLS description.
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2 months ago  |   Report   |   share
answer by Natalie Sjaardema    |   Visit My Website   |   Contact Me
Hi Denise, not at all. If you have a lender who has pre-qualified you and given you a letter, you can put in an offer on a foreclosed home just like any other buyer. The challenge is finding a foreclosure. I think they are so unbelievably overrated after transacting on over 20 of them....but suit yourself.
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15 months ago  |   Report   |   share
answer by Gina M Turkel    |   Contact Me
Not usually. I'm finding some banks will now tidy up a home with new paint and carpet in order to sell it and may entertain a mortgage.
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15 months ago  |   Report   |   share
answer by Lexsine Mitchell    |   Contact Me
Denise, the answer to that is contingent on how the property is listed. Most often than not, a foreclosed home is not in the condition to be sold under an FHA mortgage, so the bank may request cash, or conventional mortgage only. There are times when you may be able to offer a 203k mortgage. The best resource would be the specific property in question, a great Realtor and a great loan officer. Good luck in you venture and if I can be of any assistance please do reach out to me.
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15 months ago  |   Report   |   share
answer by Charlotte Wedhorn    |   Visit My Website   |   Contact Me
Property will be sold for outstanding mortgage balance owed to foreclosing mortgage holder -- this can be a low price for the property. Cash payment requirements reduce competition.
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15 months ago  |   Report   |   share
answer by Randolph Scott Bell    |   Contact Me
Just to add the 203k rehab loan has a streamlined application. But the application process for the 203k loan is tedious. You'll need a contractor approved bid and contract. Keep the rehab cost under 35,000.00 and the streamlined process is a quicker approval.
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15 months ago  |   Report   |   share
answer by Brian McCarron    |   Visit My Website   |   Contact Me
Not always. It is usually tough to obtain financing is the home needs extensive rehab. Additionally, mortgages tend to take a few weeks to close whereas most foreclosure purchases happen a bit quicker than that. Hope this helps.
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15 months ago  |   Report   |   share
answer by Michele Elchin    |   Contact Me
Yes, you can finance foreclosed homes. There are many lenders that will work with foreclosed homes. When financing, the condition of the property will need to be taken into consideration. For a property that is in need of repair, there are special loans available such as the FHA 203K loans that are designed to meet this type of financing need. If you are looking for foreclosed properties in Central Florida I would be happy to help!
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15 months ago  |   Report   |   share
answer by Rhonda Cox    |   Visit My Website   |   Contact Me
No. However, to obtain financing, condition matters. If the needed repairs are basically cosmetic the financing is much easier. Rhonda Cox Ocala, FL
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15 months ago  |   Report   |   share
answer by Sanna Thomas PA    |   Visit My Website   |   Contact Me
You can purchase a foreclosed home with a mortgage. The condition of the home may factor in if you are going to obtain a VA, FHA or USDA loan.
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15 months ago  |   Report   |   share
answer by Clifford Wilson    |   Visit My Website   |   Contact Me
Many foreclosures can be financed. The problem for a large percentage of foreclosures is the work that needs to be completed often to make the property habitable. That creates a problem for many types of loans. That is where specialist can help you. I am an FHA203K specialist and can help you obtain an FHA 203K loan to make a property that needs repairs a good value for your family. There are still some good values out there to be purchased, they need work, but does the asking price of the home in view of the appraisals in the area, allow room for improvements and repairs? That's where we can help. Contact an FHA203 specialist.
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15 months ago  |   Report   |   share
Sophisticated Financial
answer by Sophisticated Financial    |   Visit My Website  
No though many loans will not lend on properties that need work. I make loans on foreclosures all the time
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15 months ago  |   Report   |   share
answer by Walter Johnson    |   Visit My Website   |   Contact Me
No. Most of the time you can use financing when buying a home, especially if it is offered through your local MLS system. The realtor you are working with can help explain your options. If you do not have a local realtor, I'd be happy to help in any way I can. Thanks, and good luck!
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15 months ago  |   Report   |   share
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