What is the best process for buying a foreclosure? (Ocala: for sale, foreclosures)

[tankhead]

Would I have to go to the courthouse and buy it there? Do I have to pay cash? What about if I have a pre-approved loan? Any details would be helpful.

[dontaskwhy]

You do not go to a courthouse to buy unless it is a bank auction. You need to contact a local realtor to put in a contract offer and would get a pre-approval letter from your bank or a certified proof of funds to accompany. Foreclosures and short sales are not the same as an auction. I have never seen a foreclosure or short sale that was not listed with a licensed realtor.

[tankhead]

What about buying a preforeclosure? What is the process for that? I was thinking of maybe also looking into preforeclosures as another option.

[dontaskwhy]

A preforeclosure is a short sale and the process is the same and so is the advice.

In a foreclosure, the seller is not involved and the home is owned by the bank/lender.

In a short sale both the homeowner and the bank/lender agree to sell the home for less than what is owed and both must approve the sale.

In an auction, the home is sold without any guarantees and liens may remain on a property. There may not be clear title on the home. Buying at auction is buyer beware.

[bigtone]

Originally Posted by tankhead

Would I have to go to the courthouse and buy it there? Do I have to pay cash? What about if I have a pre-approved loan? Any details would be helpful.

I purchased 2 foreclosures in the Ocala area over the last 2 years. You pretty much need to have cash, The banks selling the foreclosures do not usually want to deal with a loan. By cash I mean, you could take a Home equity loan on the house you live in now, deposit it and bring a letter showing funds available. That's how I got started with my first house in Ocala. I have a very good realtor I have dealt with before, and I would scout the ads every day looking for new listings. They do go quick. Both foreclosures I bought I was either first to inquire about the house or I was in the right place at the right time. I cannot stress this enough, you need to develop a relationship with a realtor you can trust. The house I bought last year, I saw the listing on realtor .com the day it came out and I had him check out the house and send me pics (I'm 1000 miles away). He is good for picking out issues and he is honest. I made an offer based on his information, but I did get down to see the house before I signed my name to a sales agreement. That way, if I didn't like it, worst case I'm only out $500. Many people would not take a chance like that, but if you want to play when you are so far away like I am, that's the way you have to do it.
I also bought a short sale just a few months ago. The process did take 3 months, but I was in no hurry. Again, My realtor showed me the house while I happened to be in Ocala, it had just went up for sale. Right place, right time again. Watch the market, the prices are rising in the area. I think the prices bottomed out last winter, at least it seems that way to me.
I;m sure there are other ways of buying foreclosures before they are listed, but this way worked for me. Good luck.

[dontaskwhy]

Foreclosures do not require cash to purchase. I recently closed on a foreclosure who got financing from the same bank that was selling the house. You do need a pre-approval letter from a bank or proof of funds.

[bigtone]

Originally Posted by dontaskwhy

Foreclosures do not require cash to purchase. I recently closed on a foreclosure who got financing from the same bank that was selling the house. You do need a pre-approval letter from a bank or proof of funds.

That may be the case, but I have seen a few offers refused because they involved a loan. In one case the house was sold for slightly less to a cash buyer.

[dontaskwhy]

bigtone, we will have to disagree on this one.

As a realtor, I have a little more experience in the matter and stand by my statements. I have never heard of a foreclosure refused because the buyer obtained lender-financing. It all comes down to whether financing can be obtained and not whether it is "cash" or "financed". Granted, the lenders are making it difficult to get financing approval for many potential home buyers.

[cfbs2691]

I was refused in several situations because they wanted cash.
Who can blame them?

[dontaskwhy]

The only reason I can think that cash would be demanded over a loan is that a cash purchase can be closed in under 30 days vs a financed purchase which takes at least 30 days (on average).