Your broker is not calling you back because
you didn't attend Claudia's free on line course of foreclosure buying. Now's
your chance!!
WARNING: Foreclosures are not for the meek at heart. They are not for the 'wheeler dealer' types. Here's my professional advice: Do what you're told and you'll have a much better chance of getting the home you want. What you see on TV is not real. You can't negotiate a 20K HOME. The seller won't pay your closing and you have to play by the rules to the letter. Your friends don't know more than your broker.
Let's get this foreclosure procedure down and find you a home!
FIRST- the bank owns the home. Foreclosure is the legal process that takes the property from the legal ownership of the homeowner and conveys it to the lien holder because the homeowner has defaulted (didnt pay the loan). Once the court is done transferring title, the property is considered 'foreclosed'. The bank owns it and is now the seller. The bank has just taken a huge loss because the prior owner defaulted on the loan. The bank just paid huge legal fees.
The bank is a BUSINESS. The asset managers job is to recoup as much of the loss as possible. Don't take it personally, but they don't care about you, your family, or your needs. It's ugly, but it's true.
First, before you contact a Realtor....
Scan your bank statement or IRA or 401k into your computer. It has to be yours, not your relatives or friends, fiances etc. Funds from other sources (AKA mattress money) are not considered, so get it together before you ask a broker to show you a home.
If you are buying a home that is not in rough shape and is more than 60k, then you need to get your financing in order. Get with a mortgage broker or call your bank. You need a prequalification letter to make an offer. You need this before you ask a broker to show you a home.
HUD HOMES- tell yourself 500 times "I will not underbid. I will not waste my broker's time." HUD accepts offers until a deadline usually. They like owner occupied offers and cash offers best. Owner occupied because it makes them feel fuzzy over getting someone a home. Cash because a lot of these homes are not in 'finance friendly' condition. Make your highest and best offer, you won't have a chance to negotiate if there is a better offer.
Now your offer is in, and accepted. Although your broker tried to get you 10 days to inspect, the bank probably countered with 5. Remember they don't care about whether or not it is convenient to you. Get it done immediately. I can refer an inspector or you can get one of your own.
The closing date was also set by the bank. However, if you do not close on time you will most likely get a per diem (per day) LATE fee . If they don't close on time, you'll have to sign an extension. It is a double standard, yes, but they are the boss, so you have to do it their way. ( Also, they don't have to reimburse you for your troubles. The contract gave you 5 days for inpsections, it didn't require them. You had them at your own expense because you wanted to.)
Closing day comes! YIPPEE! Not so fast! Until the deed is filed (usually tomorrow), you do not own the home. Now, Do not think about parking the moving van on the property over night, or 'breaking into your home' because you are tresspassing! It will not be yours until the deed is recorded. Plan for this hiccup when you give notice to your landlord.
Once the broker is instructed to do so, you get the key!!
Congratulations!!
Claudia A DeBruyn
Realtor CNE AAHR
cell/text 781-799-7570
WARNING: Foreclosures are not for the meek at heart. They are not for the 'wheeler dealer' types. Here's my professional advice: Do what you're told and you'll have a much better chance of getting the home you want. What you see on TV is not real. You can't negotiate a 20K HOME. The seller won't pay your closing and you have to play by the rules to the letter. Your friends don't know more than your broker.
Let's get this foreclosure procedure down and find you a home!
FIRST- the bank owns the home. Foreclosure is the legal process that takes the property from the legal ownership of the homeowner and conveys it to the lien holder because the homeowner has defaulted (didnt pay the loan). Once the court is done transferring title, the property is considered 'foreclosed'. The bank owns it and is now the seller. The bank has just taken a huge loss because the prior owner defaulted on the loan. The bank just paid huge legal fees.
The bank is a BUSINESS. The asset managers job is to recoup as much of the loss as possible. Don't take it personally, but they don't care about you, your family, or your needs. It's ugly, but it's true.
First, before you contact a Realtor....
Scan your bank statement or IRA or 401k into your computer. It has to be yours, not your relatives or friends, fiances etc. Funds from other sources (AKA mattress money) are not considered, so get it together before you ask a broker to show you a home.
If you are buying a home that is not in rough shape and is more than 60k, then you need to get your financing in order. Get with a mortgage broker or call your bank. You need a prequalification letter to make an offer. You need this before you ask a broker to show you a home.
HUD HOMES- tell yourself 500 times "I will not underbid. I will not waste my broker's time." HUD accepts offers until a deadline usually. They like owner occupied offers and cash offers best. Owner occupied because it makes them feel fuzzy over getting someone a home. Cash because a lot of these homes are not in 'finance friendly' condition. Make your highest and best offer, you won't have a chance to negotiate if there is a better offer.
Now your offer is in, and accepted. Although your broker tried to get you 10 days to inspect, the bank probably countered with 5. Remember they don't care about whether or not it is convenient to you. Get it done immediately. I can refer an inspector or you can get one of your own.
The closing date was also set by the bank. However, if you do not close on time you will most likely get a per diem (per day) LATE fee . If they don't close on time, you'll have to sign an extension. It is a double standard, yes, but they are the boss, so you have to do it their way. ( Also, they don't have to reimburse you for your troubles. The contract gave you 5 days for inpsections, it didn't require them. You had them at your own expense because you wanted to.)
Closing day comes! YIPPEE! Not so fast! Until the deed is filed (usually tomorrow), you do not own the home. Now, Do not think about parking the moving van on the property over night, or 'breaking into your home' because you are tresspassing! It will not be yours until the deed is recorded. Plan for this hiccup when you give notice to your landlord.
Once the broker is instructed to do so, you get the key!!
Congratulations!!
Claudia A DeBruyn
Realtor CNE AAHR
cell/text 781-799-7570
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