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KJL LAW
KJL LAW, Arbitrator
Category: Real Estate Law
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Experience:  Attorney at Law Office of KJLLAW
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Question Estate Agent. I'm interested in purchasing a

Customer Question

Question for Real Estate Agent. I'm interested in purchasing a Foreclosed House. How is the process different from buying a regular (non-foreclosed) house? Please explain how the buying process works.
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  KJL LAW replied 1 year ago.

Hello and welcome to Just Answer. No attorney-client relationship or privilege is formed by speaking to an expert on this site, the answers are for general information. By continuing, you confirm that you understand and agree to these terms.

The difference in buying a foreclosed home vs a regular sale is that when purchasing a foreclosure from a bank it is a very business and impersonal experience, no broker. You are communicating with the lender or bank employees that owns the property. If the numbers make sense they’ll make the deal, and if not then they won’t.

But keep in mind that when you purchase a bank owned property, it usually offers the least value and most competition for the sale from other buyers.

Generally banks want to move the foreclosed properties asset off their books as quick as possible, and will price the house to reflect the market value of the property. For you, the buyer that means that there will likely be little room for negotiation on the price. The financing of the house is the same as a regular purchase, and you can either pay cash, or obtain a mortgage to purchase.

The upside is that the lender is usually clears any additional liens on the property, including back-taxes, so it’s a much safer investment than an auction or a short sale. In most cases, the bank’s will hire a company to clear and clean the house for sale, but keep in mind most foreclosed houses need a good amount of work to make them livable.

I hope this helps with your question.

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