Jennifer Bryant has made more than 30 offers on houses, mostly from her cellphone, in many cases without viewing the property. Even if you’ve got a good job and a great credit score , financing a foreclosed home can be extremely difficult. Another way to buy cheap foreclosed homes is targeting homes that are within the locality which may seem to be in bad shape but only require some basic renovation to look great.
The bank has a level of insurance in low-or-no down payment homes (PMI), which covers the purchase price if the owner defauilts. If the first lien holder (now title-holder) sells for MORE than what was bid at the Sheriff’s sale (AFTER REDEMPTION)… the profit is THEIRS and does not have to be shared with any junior lien holders.
In front of a county courthouse in Corona, about 80 bidders with lawn chairs sit in the shade as trustee sales for foreclosed properties are under way. After some time, when the market is right, the foreclosed homes can be sold at the highest possible amount they can fetch increasing a persons profit greatly.
A home inspection is ALWAYS recommended for purchasers – for your OWN protection… the current homeowners want the inspection done prior to approval so as to not slow down or stop the sale once the bank has approved (and they have to start all over again).
If you buy a foreclosed home through an independent auction, you might have to pay in cash. But while prices on homes in foreclosure can look good at first glance, they may not end up that way, he says. You can go to the courthouse and observe the process as often as you like before going to bid on your foreclosed property.