Your Questions About Foreclosures | foreclosureorder.com

Your Questions About Foreclosures

Your Questions About Foreclosures

Paul asks…

Foreclosure help needed, expert advice appreciated?

My husband and I have found a home that is in foreclosure status (per our agents MLS). We’re first time buyers and are new to this (sorry if I sound ignorant in any of this). We have to get pre-qualified through Countrywide first (we are applying this week) then were told we can get the funds through any outside source once were pre-qualified with them first. Here’s my questions
1. I have heard that dealing with foreclosures can be a way longer process than dealing with owners, is that true? and why if almost 50% of homes for sale now in Southern California are foreclosures now?

2. Can we negotiate at all or are they dead set at the listing price?

3. Can we ask for help paying closing costs if not all?

4. If we get approved and everythings a go, how long before we get the keys, (the people still live there) do they get a 30 day notice to vacate?

5. On the mls it says “in-forclosure” does that mean its bank owned or REO now or is a “pre” foreclosure? I heard those are better and give more room to negotiate price and other things..

Thanks so much in advance!!! I’ve googled alot of this but get biased advice and don’t know who to believe anymore… I just want straight up real answers from nobody involved… Thanks

Your Questions About Foreclosures

The Expert answers:

Go ahead & get pre-approved with CW but do not get your financing from them. List price is not the bottom line they will take. Paying closing costs is always negotiable, it just means they will not come down as much in price. They have a bottom line figure they will take. It’s just figuring it out. Your agent needs to find out from the listing agent when possession can be. Banks, in their contract, say you will pay $100 a day for every day the closing is delayed over 30 days. That is if it is your fault. They have no such clause if it is their fault. It can be done, but you need to ask questions about possession & any other reservations you have.

Your Questions About Foreclosures

Donna asks…

Homes for sale….legitimate or not?

I am perusing the NY Daily News classified ads and I am seeing plenty of homes for sales by owner with low down payments listed. Some say owner pays closing costs, etc. Some have an agent. These homes are in the borough of Queens in areas where many have experienced foreclosures. Now, are these legitimate. I am interested in home ownership. I have a high credit score, long term employment, and would love to stop renting ….the only problem is I don’t have a huge down payment and my income is too high for those home ownership assistance programs. I do have something to put down….just not a lot. Anyhow, should I look at these offers or are they likely to be scams?

Your Questions About Foreclosures

The Expert answers:

It is not likely.

For one, the seller can NOT determine your down payment, that is up to your lender. It is also illegal for a seller to pay more then 50% of closing costs.

At least 50% of those ads are scams, so you need to be careful. Make sure you involve an agent of your own or an attorney.

Your Questions About Foreclosures

Michael asks…

Home is in foreclosure and being sold at sheriffs sale.?

Our home is in forclosure and is being sold at sheriff’s sale. This is basically an auction to the highest bidder and may only get 10K for house that has 70K owed on it. Are we still responsible for the remaining balance of the loan? I had read somwhere that with all of the bailouts the government has given to the banks they had to forgive any remaining debt on a mortgage loan if it was auctioned for less than owed. Is that true?

Your Questions About Foreclosures

The Expert answers:

You are responsible for the deficiency. The lender will sue you for it (rare) or charge it off as forgiven debt and issue you a 1099 for it ( common), in which case you must pay tax on that amount as income, but will not have your wages garnished or your bank accounts or other assts seized.
You need to establish whether you are in a recourse state or a no-recourse state.

Your Questions About Foreclosures

Nancy asks…

I offered 10% less than asking price on a short sale home?

Less than a week ago, I put in an offer for $110,000 for a short sale home that was asking $119,900 in North Carolina. I was recently told that the previous owner owes $132,000 on the home. My agent said they were sending someone out this week to do an appraisal. Also, I should mention that the house is vacant. So to me, that means the home is very close to going into foreclosure. The listing is advertised as a short sale pre foreclosure. I have submitted my offer, along with my pre approval letter from the bank, and the sellers agent has already cashed my $500 earnest money check (deposited it into an escrow account)
I also gave them a time limit on my offer (as advised by my agent) Which is the last day of the month. Is that a good offer for a lender to accept? Even though it is less than the asking price? I’m so worried they will decline my offer!
PS. My uncle (who is an agent) pulled comps from the area and said the house is worth around $130k so yes, I low balled them.

Advice Please!!

Your Questions About Foreclosures

The Expert answers:

I probably would have offered them $100,000 keeping in mind that the bank has to approve the short sale and workout the balance with the previous owner. But if you want this house it is a very good offer.

I know this isn’t what you want to hear but don’t get too emotional about a house or purchase, in a negotiation, otherwise you will pay more than you should. Don’t be afraid to walk away, I am sure this isn’t the only foreclosure or short sale that is out there.

Good Luck

Your Questions About Foreclosures

Mary asks…

How will Obama spin a record number of U.S. homes were lost to foreclosure in the first 3 months of this year?

More homes were taken over by banks and scheduled for a foreclosure sale than in any quarter going back to at least January 2005, when RealtyTrac began reporting the data, the firm said.

“We’re right now on pace to see more than 1 million bank repossessions this year,” said Rick Sharga, a RealtyTrac senior vice president.
http://www.cbsnews.com/stories/2010/04/15/business/main6398303.shtml

Your Questions About Foreclosures

The Expert answers:

It’s all Bush’s fault… Like everything else.

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Your Questions About Foreclosures
Your Questions About Foreclosures
Your Questions About Foreclosures
Your Questions About Foreclosures
Your Questions About Foreclosures

Your Questions About Foreclosures

Your Questions About Foreclosures