can own a home worth thousands more than you pay
When Purchasing A Foreclosed Home
Price Range of Foreclosed Homes
Foreclosed homes come in all price ranges from the starter home at $50,000 or less to the executive home for over $1,000,000 and more.
Condition of Foreclosed Homes
While some homes that are HUD or Bank owned are in good condition, many need repair or updating.
Repair and updating
When buying through Clifford Realtors you can make your purchase and have funds set aside for needed repairs and updating such as; new roof, new kitchen, carpet, painting, furnace and air conditioning, windows, walls just to name a few items that can be updated or replaced. The home must appraise for the value of the purchase price and the added funds for the repair.
Loan Type and Terms
The loan we recommend is Conventional for Owner Occupied properties. It usually is a 30 year fixed rate but there is also an ARM which is fixed for a period of time then goes to a fixed rate for the remainder of the term. With an FHA loan when you are going to occupy the home you can borrow the money for the purchase and any funds needed for repairs and updating with one loan should the repairs total no more than $6000. There usually is no additional charge or special fee for the extra funds. When the repairs are above $6000 a 203-K FHA loan is usually the answer that has low inspection fees when the repairs are completed. Call a reputable lender to get more details and to review your many options. You can contact one of our agents who have worked with lenders that they can recommend for your type of situation.
If you have made any offer on any foreclosure, you already know they are very different than buying from a private owner. While they remain a really good buy they have several requirements.
Freddie Mac owned properties are usually priced well below market and you usually get instant equity. They will pay for your closing costs, if the price is right, but they will not pay for buyers closing costs plus the down. Even if this is added on to the purchase price, they will only consider paying one of these charges. They require a $500.00 earnest money check when the offer is made. They do reply to offers in a really short time, usually 24 hours. They will consider some repairs if the inspector or it is mortgage required.
On a HUD home most buyers do not know that HUD requires a $500.00 earnest money deposit on any home priced $50,000 and below. On a HUD home priced over $50,000 HUD requires a $1,000 earnest money deposit. This is due when the buyer writes the offer. They will however help with closing costs and down payment. Property usually purchased “AS IS” condition.
A short sale is very different from a foreclosure. This is usually a pre-foreclosure and the mortgage company considers bids that are less than the owners owe on their mortgage. On most short sales, if the mortgage company agrees, the difference on the owed amount and the sale amount is written off by the mortgage company. On a short sale you can’t be in any hurry to move. Short sales can and usually do take weeks if not months for the mortgage company to get back with your agent on the offer. If the bottom line is what the mortgage company will accept, they will consider closing costs and buyers down. Property is usually purchased “AS IS” condition.
Each mortgage company has its own individual guidelines so call 614-501-1500 or e-mail firstname.lastname@example.org to check this out before making your offer. Most do require an earnest money deposit and a pre-approval letter from the buyers’ mortgage company.
Most mortgage companies will not pay for any inspections, repairs and they require an earnest money deposit when you write your offer. Return to home Page