Profile picture for vctan77

WHat is involved in a foreclosure? How much is required down payment ?

  • October 16 2013 - San Francisco
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

 
 

Answers (6)

Profile picture for Ofe Polack
Think of a foreclosure as a property owned by a bank, who is selling it "as is" which means they will not do any work on the property. Some foreclosures are in very good shape, others are not.  Once you find one that is in relatively good shape, get pre-approved to purchase the property.
  • October 16 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for JuliJ
Same analysis will prevail on "Foreclosed" property - If it would pass VA appraisal and the buyer wants to go 100% with VA - then it will be fine.

If the buyer chooses to go FHA - then it will have to pass FHA appraisal -
KNOWING that most foreclosures will OFTEN elect to MAKE no repairs.  If  no repairs jeopardizes financing then you all wasting time.  If property is distressed (needs a new roof, plumbing problems, lacks appliances - then FHA loan option is quickly off the table.

If the buyer is going conventional - then it will be determined by the buyer's strength as borrower and what they have to work with financially.

Another option to explore is a 203K scenario - LOTS more time, paperwork and not many lenders offer as a LOAN PRODUCT  -- longer closing time - which also not always the MOST attractive offer to a bank trying to dispose of a property.

The more the buyer can put down -The better it can be viewed by the bank evaluating offers for consideration coupled with PRE-approval letter for the remainder to demonstrate strength of buyer.

Good Luck
  • October 16 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

As long as the home is fully functional, there is not difference when buying a foreclosure from a traditional situation.  FHA, Conventional, and VA will still be the normal situation with requirements.  If the home has been damaged, has no heat, not livable conditions, you most likely will need to pursue some type of construction or mini construction loans to make it work.
  • October 16 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Are speaking about when it comes buying a foreclosed home? If so, the down payment may depend on the type of loan you receive to buy the house. A conventional would be around 10%-20%, an FHA would be 3.5%, and so on and so forth. In order to buy a foreclosed home, you need a loan just like you would any other house. There may be a few more hoops you'll have to jump through for things like inspections and what not, but it's still the same process. I recommend you speak to a lender like myself who would be glad to help you get the loan that you need. So if you have any other questions or need a loan, please contact me through the information on my profile page. I hope this helps and good luck!
  • October 16 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

A foreclosure is normally owned by a lending institution. They are low priced but the lender (bank) will want to look closely at the financial stability of the potential buyer.
Conventional loan down payment is 20%.
  • October 16 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for Rebecca Marvel
Aside from condition - accepting the property AS IS - there is no difference in buying a foreclosure.  I have been selling them since 2005
  • October 16 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.