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Questions About Foreclosure Help

Buying a foreclosure in florida help?

Hi all I’m a 25 year old single mother in Florida. After splitting with my ex I moved back in with my parents… I’ve been looking at rental’s but they are so expensive and I feel they are a waste of money. How & where do I start to look at homes that are in foreclosures or short sales. I want my son to have a stable home and not be moving from apartment to apartment. Does anyone know how much I would have to put down, ball park. I have a decent job & credit.. but not looking for a crazy monthly payment (mortgage) any advice please advise. Thank you 

Industry Expert answers:

First you need to talk with a realtor. They are the ones who can show you the properties in your price range and you need to use one to place a bid on a property.

Next…you need to go to your bank or credit union and get a mortgage commitment. This is not a pre-approval…this is a full blown commitment. They will want your income statements, tax returns, credit check, and a full listing of all assets and liabilities. They will produce a paper with the max amount they are willing to lend to you. The property you pick will still have to qualify and the bank will want you to pay for an appraisal once you make an offer on a place.

IF you are a first time buyer… Check out homepath. They have special deals for HUD properties being sold to first time buyers

SO..the process:

REO. Foreclosure is done, bank has the property..it is empty. These places are often trashed. Nearly always the A/C, washer, dryer, refrigerator, stove, etc, etc at missing. Often the walls have been bashed in and the tile/carpets ruined too. But..there are deals here to be had.

So.. There are two basic types of REO. HUD owned homes and bank owned. Both are listed on the MLS.

These properties are not all released to the market at once. HUD and the banks are holding back a large inventory in the hope of keeping prices up. Once these places are release to the market..they are placed on the MLS. The good ones are usually gone within a week of the initial listing. So..be prepared to act.

What you need to bid on an REO. 1) you need to have the mortgage commitment in your pocket already. This is NOT a pre-approval. MORTGAGE COMMITMENT. Or proof of the cash in the bank to make the straight purchase. 2) cashiers check for the earnest money..usually about $1,000. 3) a realtor to make the bid for you.

When you see the property you want…act immediately. Usually the cash only buyer will win. But..everything else being equal you need to understand the banks are not willing to discuss this… Full price is what they will accept. The decent properties are under contract within 5 days. HUD will leave a place open for bid for only 1 week. Be ready

Foreclosure help?

My sister just received notice her house will be in foreclosure. She has 30 days to react and 90 days to pay. Does anyone have useful information as what she can do? She obviously doesn’t have the money to bring current and has tried to work with the lender but seem as if they don’t care.

Industry Expert answers:

She can tell them she is selling and then try to get it sold in 90 days.

Even if she came current this month, what about next? She obviously bought more house then she can afford and needs to get out.

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