How do I get help buying a foreclosed property?

cookie: How do I get help buying a foreclosed property?
Want to buy a house, but priced out of the market. Have been warned that buying a foreclosed property is a bit daunting, especially for a first timer. Are there legit people that assist with this? How would I find them? I know where I can find foreclosed properties (Yahoo! Real Estate), just not how to go through the whole process of buying one. Thanks!

Answers and Views:

Answer by REinfo
First do your research on every home the you’re interested in. Remember alot of Foreclosed homes are sold as is by the bank. You can either buy and REO (foreclosed home which is bank owned) or you can buy a SHORT SALE Home(still owned by person but bank will accept less than they owe) you can get deals both ways. Short sale homes and REO homes can be provided by your local realtor. And also for Foreclosure homes you can go to the county court house and Bid on them against other people, but make sure you do your research.

Good Luck

Answer by Landlord
Any competent real estate agent will be able to help you. You will need to be prequalified before you even start, sometimes by the specific bank selling the home. You do not have to take your loan from them, just qualify for one.

Real estate agents are the only people legally allowed to help you with this in the US.

Answer by LadyB!™
Any real estate agent can help with this buying process, it’s virtually the same as any other purchase – except the seller is an institution and not a person. Although, you MUST be able to follow through on the sale, or they WILL keep your earnest money! SO be sure about your mortgage financing before you make an offer.

Most of these homes come with a seperate set of Riders added to the traditional real estate contract, and the terms will always favor the lender/seller.

Some general points to consider with buying foreclosures is most will need some type of repairs or updates and will your financing allow for this? Many lenders will not fund a purchase that has deferred maintenance. If you have the cash then this is not a problem usually.

Also, you should be clear about the required repairs (home inspection) Which doesn’t usually happen until after the contract and earnest money is tendered, which puts your deposit at risk if you find out the repairs are too costly and you want to back out. Most foreclosure sales are “as is” with no warranties as to the condition of the property. Buyer beware.

Best to have a friend or contractor look at it before you make an offer — DO your homework. Review the area comps to be sure you are still getting a deal once all of your acquisition and repair cost are considered.

Also, selecting an agent that is VERY familiar with this process is essential. No offense to anyone, but all RE agents are not created equally. And bad advice in this scenario is costly.