Buying Foreclosed Homes
BuyforeclosedNJ-Dot-Com is your resource for Major Banks Own Properties also know as "REO" properties. We offer a valuable resource for first time home buyers looking to buy cheap homes to rehab & season investors looking to expand their REO portfolio. The types of homes that you can buy from Major Banks include Single Family Homes, Condominiums, Multifamily & Small Income properties; search for 1000s of foreclosed resources offering REO properties & short sales. In most cases you can buy foreclosed homes for a fraction of the original market value. From City Center, Urban areas, Suburban & Farm properties are available for fraction of the original home value. Lenders, Asset Managers & Trustees are willing to contemplate any reasonable offer for these none performing assets.
The REO Property Buying Process
The process of buying foreclosed properties from Major Banks can be different from your traditional Real Estate purchases. Is generally easier to find the home than securing financing for your foreclosure home purchase. Once the Bank "Seller" accepts your offer it will establish a time line for inspections, mortgage contingencies & Closing Usually a few weeks to 45-days. Closing date extensions usually come at a cost in the event that the buyer won't meet the closing date deadline. Some REO Sellers might require prove of funds POF or a Bank Qualification of their choice. Success in buying these REO properties lays in the ability of the buyer to close within the set time & work with a Real Estate Professional that Understands the REO buying process. It's highly recommended for buyers to present the best and highest offer from the start; as there's a lot of competition for REO properties
Financing Your REO Purchase
Financing distress properties can be a challenge the fact is that a good number of REO properties need some sort of repairs or upgrading in some neighborhoods vacant properties are vandalized & need more work. There's special financing to purchase these properties from FHA for first time homebuyer that are going to occupy their new home. FHA offers 203K loan in two flavors, the 203K Stream Line or 203K Full. With these types of loans you can borrow the funds to purchase the property plus rehab cost. With the 203K Streamline you can borrow up to $35,000 for repairs, upgrades or rehabbing your new purchase consult with a mortgage professional about financing REO properties. NJ FHMA offers first time homebuyers assistant programs to allow buyers to buy with no money down. USDA offers financing for purchases in Rural Areas up to 106% Financing for qualified buyers. Always check with participating lenders & mortgage professionals for availability of these programs in your neighborhood.