Foreclosed Homes

Dated: 02/11/2014

Views: 1328

 Foreclosed Homes, everyone wants to buy a foreclosure. Key here is to be prepared before you find the foreclosed home or property. As the saying goes "Cash is King". The buyer who is a cash buyer will need a "Proof of Funds" letter from the financial institution the funds are associated with. Sellers will not even look at a buyer's offer that does not have a Proof of Funds letter. Some foreclosed homes today are receiving dozens of offers and the strongest offers are the ones being excepted.

 The buyer planning a purchase of a foreclosed property using some kind of financing will need a Lender's Pre-Qualification Letter. Buyer's can get these Lender Pre-Qualification Letters from their financial relationship they already have or from lenders working with their Realtor. These know and existing relationships are the best. Once again seller's are not interested in offers that do not have Lender Pre-Qualification Letters and will not take those offer seriously.
 Foreclosure purchases can be great purchase opportunities now that you have your Proof of Funds or a Lender's Pre-Qualification Letter. So there are several websites where buyers find foreclosure homes and properties. How does the buyer know of the accuracy of the information? Well that is where a good experienced Realtor will pay many returns. The Realtor can verify information and explain what position each foreclosure is in as they are all different. Is the foreclosed home a "Cash Only" position or a HUD Home with an Escrow Account or is the property in a Short Sale position? The Realtor will keep you from running all over town wasting time and money.
 Some foreclosed homes will only accept Cash offers usually because the home is in poor condition and in need of some major repair. Major repairs could be, but not limited to; roof repairs, furnace or plumbing. Ugly carpet and paint are not major repairs. Buyers using the financing to purchase a foreclosure will have restriction that keep them from purchasing homes in poor repair. Lenders do not want buyers with a limited purchase position to buy a home with a leaky roof. Make sense? These restrictions are to protect the buyer and their investment.
 There are other types of foreclosures, HUD Homes and Short Sales are also very attractive foreclosure purchases if you know what you are looking at. Foreclosure homes can be not only in need of repair, but there could be "judgments" on the home in foreclosure that a buyer may be required to pay. Judgments can keep a Title from passing to a new owner. There could be an "Escrow" set that could need financed a long with a loan.
 Get yourself a good Realtor with experience in foreclosure sales to help you look at each foreclosure closely so you can see each position the foreclosure is in. 
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James Tedesco

13 years Experiance with sales involving all types of buyers and sellers needs. Single family home, town-home or condos no matter the need or location through out the greater Denver area and all surro....

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