Click here to submit a request for a current list of foreclosures.

Click here to request selling your home on a short sale.

Distress sales resulting from bank foreclosures often represent a great way to get a fantastic deal on a home.  They often move quickly, so you will need to jump on the opportunities promptly.  Be aware that there will usually be several offers on the home, so you will want to place your best offer.  Haggling here could cost you the deal.  Make a simple, respectable offer.  Be sure to have your financing in place and all your ducks in a row.  There are several types of homes that may fall into the foreclosure or pre-foreclosure categories, but there are three main divisions:

HUD homes: When someone with an FHA insured mortgage defaults on the loan, the lender forecloses on the home. FHA pays the lender what is owed and then HUD takes ownership of the home.  Purchasers must use a broker or agent who is registered with HUD to place a bid on a property. HUD takes bids for the first ten days of the listing only from those who intend to occupy the home.  Owner Occupants must live in the house as their primary residence for at least one year and may not purchase another HUD home as an Owner Occupant for two years. If there is not a satisfactory bid in the first ten days, the homes are made available for investor bids.  HUD will not simply accept the highest bid; they will only accept the highest satisfactory bid.

HUD will allow some seller paid closing costs, but not all of them.  HUD will deduct the costs from the bid in determining the best “net bid” on the property. You will need to work closely with your lender and realtor to make sure you know what HUD may or may not cover so that your realtor can make an effective bid for you.  HUD homes require $500 earnest money for offers under $50,000 and $1,000 for offers over $50,000.  Closing a loan on a HUD home takes about 2 weeks longer than usual and requires additional paperwork.  HUD homes must be closed with a HUD approved title agent—this may not be conveniently close to where you live.  You will also need to have the home re-keyed when you move in.

Bank-owned homes:  Similar to HUD homes, when someone defaults on their loan, the bank forecloses on the home. Banks want you to be ready with your financing right away, but they reserve the right to drag their feet as long as they deem necessary.  It is sometimes a frustrating, long process to even see if the bank has accepted your offer.  Buying a bank-owned property requires great flexibility on the part of the buyer.  Every bank is a little bit different in how they handle the process, but realize they make the rules under which they will accept an offer.  Be sure that you can meet their specific guidelines.  For example, some banks require you to be able to close within 15 days.  Keep in mind that many banks refuse to pay any of the buyer’s closing costs.

Short Sales:  In a short sale (or pre-foreclosure sale) the lender(s) agrees to sell the property for less than what is owed; it requires permission from all lien holders.  Banks may agree to the sale because it will save the expense of foreclosure proceedings and resale costs.  This becomes more complicated if there are multiple lien holders because all of them must agree to the sale.  You may not be able to get financing for the entire purchase, because you may be required to pay some of the lien holders in cash.  You will have to move quickly on the sale, or the bank may move forward with the foreclosure proceedings.  Again, the banks may refuse to approve a contract that pays any of the buyer’s closing costs. The process can take weeks to several months depending on the lender(s) process.

If you need to sell your home and the market will not allow you to sell for what you still owe, the bank may consider a short sale.  This will affect your credit negatively, but it is generally a better option than letting your house go to foreclosure.  Be prepared to explain and document your hardship. Your Realtor will help you negotiate the short sale. It is often a lengthy process depending on the lender(s) holding your lien(s).

Click here to submit a request for a current list of foreclosures.

Click here to request selling your home on a short sale.