Upcoming Foreclosures

How do you pay for a foreclosed home?

Do you have to pay one lump sum when you make the purchase? Can you make monthly payments? Do you need to make a down payment? I don't understand how this foreclosure stuff works, I need some help.

Public Comments

1. If you have the cash then you pay for it with cash if not then you have to get a mortgage loan from a bank or mortgage company. Most banks and companies will lend 100% on foreclosed homes because of the prive vs. appraisal ratio. However if you are asking this I highly doubt you are ready to buy any kind of home yet because these people in the lending industry are viscious and will walk all over you if you do not know exactly what you are doing.
2. It is worth getting a Realtor in such a purchase. Some foreclosures require cash only. Some will allow borrowing, thought the lender would be more likely to determine that. If you are paying cash then a down payment is not needed. However if borrowing a bank may require substantial down payment. You would require deposit or Ernest money when making the offer. The issue with foreclosures is the risk. The seller dose not need to provide property disclosure statements. At least not in NY. They usually will not pay for a survey. Sometimes they wont even pay for a title search. So a Realtor can help you navigate through all that. And their fee is almost always build into the list price. Hope that helps.
3. It depends if you're bidding at an auction or if you're making a purchase after it reverts back to the bank. If bidding at an auction you are required to have all dividends present in the form of a money order or cashier's check. I believe you don't have to give the full amount at the auction but you have something like 7 days to pay in entirety. if you're purchsing from a bank after revert which means no one purchased it at the auction, then you make them a offer. You can ask them to finance you or finance through another company. This is just like purchasing a home up for sale, everything goes accordingly, except you usually get better pricing because the banks are losing money by holding on to the property. Any other questions try calling Grace Funding Group. they're a real good company +310-515-7488, they can help you. Hope I helped.