How to Buy My Neighbors Foreclosure???
Okay guys, literally my next door neighbor went into foreclosure and lost their house three weeks ago. I would like to purchase the property ASAP. How do I go about this procedure? I know the bank already through looking at tax records. The house was purchased by them four years ago for 86k, I was wondering also what type of discount I could get, if any, for purchasing soon and with cash if I choose to.
Thanks,
Chad
1. find out what stage of foreclosure its in? pre-foreclosure or foreclosure?
2. What is owed on the property?
3. What is the property worth?
4. How much is default amount?
5. any liens?
6. If its worth it and their is enough equity contact the homeowners and offer to buy it.
Before you buy it
get prequalified & secure financing
do you have cash reserves on hand?
will it be owner occupied or an investment property? this will make a difference in financing.
Who do I talk to to find out all of this information? It will be owner occupied, I have cash reserves and was actually considering purchasing it in cash
Hey, those are some great things to check out while doing your due diligence @Gerald Harris . I would like to know as well where you could find the answers to those questions? I'd really appreciate your input on this. Thanks in advance.
1. Start with the homeowners and ask them to give you the NOD letter that they recieved.
2. Contact a title company to have them run title on the house to check for liens.
3. Get mortgage info from homeowners. Get written permission to talk to mortgage company from homeowners.
4. For values goto: http://findcompsnow.com
5. Do owners still own property or did it already go back to the bank
homwowners have alot of this info
the homeowners are already gone, the bank owns the property now.
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#1 Foreclosures Contributor
- Real Estate Professional
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You'll have to wait for it to be listed. Watch the windows for stickers that may indicate the real estate agent, and of course talk to anyone who shows up.
The points that Gerald has made for you to follow are excellent. Be sure to pay to get the title pulled since if it is not clear you need to know what other encumbrances might be on the property.
Thanks for all of the good points. I ask because I have the same situation next door to me and it wanted to research it. Thanks everyone
Is it a small local bank or a big bank?
If it's a smaller bank you can call them directly or go visit.
A big bank, wait for the RE agent to come around.