What is the best process for buying a foreclosure? (Orlando: bank owned, short sales)

[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.

[g0gat0rs]

Just have the cash ready.

/thread

[annerk]

If you buy at the courthouse steps you generally need the cash at the courthouse steps.

If you buy REO you can do so through a mortgage process, be aware that the list price for an REO is usually much lower than what the bank will actually take for it, and often there are tens of thousands of liens such as HOA's and taxes which must be satisfied prior to obtaining clear title.

Talk to a lawyer, without understanding even the basics of the process you have no business even considering it.

[KrazeeKrewe]

Originally Posted by annerk

If you buy at the courthouse steps you generally need the cash at the courthouse steps.

If you buy REO you can do so through a mortgage process, be aware that the list price for an REO is usually much lower than what the bank will actually take for it, and often there are tens of thousands of liens such as HOA's and taxes which must be satisfied prior to obtaining clear title.

Talk to a lawyer, without understanding even the basics of the process you have no business even considering it.

That is why you buy title insurance before closing.

[annerk]

Originally Posted by KrazeeKrewe

That is why you buy title insurance before closing.

Uh, you can't buy title insurance without a search, and they won't bind title insurance unless there is clear title.

Again, talk to an attorney.

[tankhead]

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

[voxelized]

Originally Posted by tankhead

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

Short sales? A world of hurt from my friends experiences - I don't recommend it unless you have time (6 months to year) and really want a specific property. There's an entire forum here dedicated to the process.

Oh, have you seen foreclosed homes in Florida? Ive seen appliances torn out, copper pipes and wiring removed, no light fixtures, damage everywhere, etc. Owners get angry then trash the place. Not sure if Chinese drywall was a problem in Orlando but it was in the Treasure Coast. Unpaid HOA and taxes could easily be $10K extra.

[KrazeeKrewe]

Short Sales are a long wait & difficult. Foreclosures are expensive & could have liens. The easiest & safest way is to buy a REO. I have bought 6 REO's in the last 3 years & they are the best value. Wait until the bank sells it to HUD & they write it way down & wipe out all the liens. Then buy title insurance to CYA & closing is fast & easy. The title insurance paid for undiscovered back taxes during title search on 2 of my REO's.

[AONE]

COurthouse sales are not bank owned and are not for the inexperienced. There are so many things that can go wrong so you really need to know what you are getting into. I ahve a client that we do well with these but she is an expert in the field. It does require cash. and you must put money down after you win a bid. (10%)

REO's are the safer bet for most investors but these too have risks as they are as-is sales. I have done a lot with them and the HUD homes. I'd suggest getting an agent that knows how to win the bids and knows what to look for.

Good Luck.

[chopchop0]

Originally Posted by annerk

Uh, you can't buy title insurance without a search, and they won't bind title insurance unless there is clear .

That's the title companys responsibility and if they screw up, that's why you have title insurance