Where can I get information about foreclosure and short sale homes?

by admin on August 28, 2010

Question:

My credit score is between 650 and 670. I am planning to buy a house with my husband and his credit score is above 800. Are foreclosure homes better deal?

Answer:

There are many places where you can find foreclosure properties. To start, go to your bank and find out how much money they will allow you to spend and if they will lend you money to buy a property on foreclosure. When buying foreclosed properties, you must have the money available in the quickest way possible. In some cases, you even need to write a check for the home at the same day. You will need to have all the details worked out with the lender ahead of time.

Buying a house at the sheriff’s sale would be too risky so it would be better for you to look on pre-foreclosure or REO properties. The REO properties are the foreclosed homes which are already owned by the bank while the pre-foreclosure properties are the houses which are not for sale yet, but are in default. In both cases, the owner may be trying to sell the property as quick as possible. The home may be listed on an agent or it could be put on sale by the owner. Either way, these properties are considered “distressed” and should be selling under the current fair market value.

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