Thoughts & Advice Please on a Foreclosure

[Martha T.]

Hi everyone. There's a local listing on a foreclosure & I called the realtor (3 calls) and she said "it's cash only or a conventional." My gut tells me this isn't entirely true. I asked if she knew which bank is foreclosing it & she didn't know. It's been on the market for 37 days & she doesn't know how long it's been vacant. If my husband & I decide to move on this, it's our first home loan. We see potential in fixing it up to rent. It would not be a problem to find renters as there's a shortage for short-term in this area. Any thoughts would be much appreciated! Thank you.

[Wayne Brooks]

If you're not buying it to live in, you can't use FHA financing anyway. That's what "cash or conventional" means, no FHA. They are assuming the property won't pass FHA inspection requirements, I assume. When you it's a "foreclosure" is it a short sale, or an REO? Both will require a preapproval for your loan, with the offer.