U.S. CitiesCity-Data Forum Index
Covid-19 Information Page
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 05-11-2009, 06:28 PM
 
73 posts, read 316,479 times
Reputation: 26

Advertisements

I understand bank owned foreclosures and I understand FHA loans, I'm trying to use both of them to find my first condo/house. Here is my dilema/question: When you purchase a foreclosure you have to put up a garauntee of a deposit of some sort along with your offer (basically saying you can't make your offer contingent upon the ability to obtain financing). The problem is it takes a while to get approved for an FHA loan (inspections or FHA spot approval etc) by the time you can put an offer down the property is long gone (atleast the good deals are). Has anyone had any experience or advice with purching an REO with an FHA loan?
Rate this post positively Reply With Quote Quick reply to this message

 
Old 05-11-2009, 06:41 PM
 
12 posts, read 47,387 times
Reputation: 17
I am purchasing a bank owned house right now with an FHA loan and my deal is contingent on financing
Rate this post positively Reply With Quote Quick reply to this message
 
Old 05-11-2009, 06:57 PM
 
73 posts, read 316,479 times
Reputation: 26
I'm confused then, so what do banks require you to do when you make your offer? Is it just be preapproved for a certain amount?
Rate this post positively Reply With Quote Quick reply to this message
 
Old 05-11-2009, 08:14 PM
 
28,461 posts, read 75,335,596 times
Reputation: 18520
Once a bank takes ownership they can make the terms anything they want -- some are extending moderately liberal terms of sale (accepting some contingencies) while other lenders are treating their REO as just a bit more flexible than an auction with basically "all cash, as is" type deals.

A lot depends on the local market conditions...
Rate this post positively Reply With Quote Quick reply to this message
 
Old 05-12-2009, 12:27 PM
 
Location: Summerville, SC
1,149 posts, read 3,925,427 times
Reputation: 1121
Quote:
Originally Posted by azsandshark View Post
I am purchasing a bank owned house right now with an FHA loan and my deal is contingent on financing
Ditto, though I am using an FHA 203k. In the middle of the 45-day wait at the moment.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 05-12-2009, 05:49 PM
 
73 posts, read 316,479 times
Reputation: 26
Interesting, my impression was these banks want the foreclosures off their books ASAP. Settling for a buyer who has to wait 45 days to be approved wouldn't sound like something the bank would be interested in doing. I'm looking at an aggressivley priced foreclosure in Chicago in a great location that was just listed. I don't think it will last on the market long, I'll try my luck and see if the bank will accept an offer very close to listing price but contigent on financing.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 01-02-2010, 02:22 PM
 
Location: LA
304 posts, read 853,932 times
Reputation: 98
Quote:
Originally Posted by chicubs View Post
I understand bank owned foreclosures and I understand FHA loans, I'm trying to use both of them to find my first condo/house. Here is my dilema/question: When you purchase a foreclosure you have to put up a garauntee of a deposit of some sort along with your offer (basically saying you can't make your offer contingent upon the ability to obtain financing). The problem is it takes a while to get approved for an FHA loan (inspections or FHA spot approval etc) by the time you can put an offer down the property is long gone (atleast the good deals are). Has anyone had any experience or advice with purching an REO with an FHA loan?
_____________________
No matter what klind of purchase it is, you should always get pre-approved up front. It only takes a few days at the outside. Your loan officer will need pay stubs, taxes, etc.

There is nothing wrong with an FHA loan. But...

My clients keep running into REOs that want cash only. They reject our offers even if we are the highest offer.

The losing banks, and the asset managers who they get to manage the sale of their REOs, go for speed of closing rather than amount of the bid.

The amazing thing is that there is ALWAYS a cash offer around the corner. There is so much cash floating around LA at the moment, while prices are great, banks dont have to wait long for a cash offer to appear.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 01-02-2010, 02:24 PM
 
Location: LA
304 posts, read 853,932 times
Reputation: 98
Quote:
Originally Posted by StarryEyedSurprise View Post
Ditto, though I am using an FHA 203k. In the middle of the 45-day wait at the moment.
-----------------
If the bank is willing to deal with you having to get a loan, you are lucky.
Congratulations in advance!
Rate this post positively Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2020, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top