Real estate

Anyone know anything about buying foreclosed home with no money down?

As an investment or a residence?

Government foreclosure sites such as Homepath and Homesteps offer 'First Look' initiative properties that only allow primary residents to offer or bid on the property for up to 15 days. This essentially takes the investors/flippers out of the equation (as they are usually cash buyers, or offer better incentives for the bank to accept the bid). It is illegal for an investor to buy these properties in this allotted time frame.

This allows for you secure possible FHA loans sanctioned by our government. There are many programs out there that offer low finance and low down payment options. Most are as low as 3% down, but I do believe there are zero money down options (as well as loans and grants). 

I would simply inquire with a mortgage broker about your situation. They need the business, and will discuss the available programs.

I would say that if you are looking for a regular foreclosure and DO NOT offer some incentive for the bank to accept your bid (quick closing, some down payment, etc), than you will likely have a very hard time buying one. Especially if it is in a hot area or at a great price point. You will be competing against investors with very big pockets.

Banks usually, and rightfully so, go with the sure thing: a low risk buyer who will quickly take a number off of their books.

Foreclosed properties at no money down..not anywhere you would want to own one.

Some cities (notably Detroit) offer this program for primary homeowners. I am not sure that the program is available to investors. That said, I am sure there are loop holes/straw buyers/etc to get around it. I would think as long as the city is clearing inventory, providing gentrification, and collecting taxes everything is peachy.

'If' (big if) anyone wanted to live in these areas you can really pick up some architectural gems. Here is a list of the available homes, as well as the ones that have sold. Absolute steals, although it may feel like Mosul at night there...

https://auctions.buildingdetroit.org/

Well I'm in California,,, I've been researching this for awhile,,,,it's seems possible to purchase an reo with none of your own money,,,, but where I just wanted to know step by step instructions on how to purchase the property,,,,what do you do after you puchase the property,,, or how do you check if there are any other loans on the property,,,,

What incentive are you offering the bank to get a property with no money down? I am curious to see what bank is letting you purchase a home with NO down payment. Have you been approved for a loan on the property?

It seems you may wan to consult a real estate and mortgage broker on this proposed acquisition. Regardless if there is no money down for the loan, you must be prepared to pay for an inspection, appraisal, and closing costs.

There should not be any loan or liens on the property if it is a REO. The bank usually excepts the debt on the property after foreclosure, hence, foreclosure. Once the bank is listed as a REO all loans tied to to the house are expunged. Only when the house is being sold at auction is when you need to consult a lawyer for a title search, etc. That said, I am not sure how Cali foreclosure laws work. As said before, your lawyer will provide a title search to see if there are any liens on the property. That's why you have a closing attorney.

I guess my point is that there really isnt such a thing as a 'no money down' real estate deal. Be prepared to pay some up front; then get ready to REALLY pay when you have to do repairs. REO's are usually sold 'as is' and banks will not pay for repairs.

I am a real estate agent in California, I really wish I could help you more with fine details, but this is a very specialized area. I can however verify that the above post is true. Also the one time I talked to a bank about a no money down purchase they said it was virtually impossible, in most cases you need 20% down. Something people used to do is get an 80/20 loan on a property, but then go to  another bank to get a loan for the remaining 20%, well thats not possible anymore and part of the reason we had a crash in the beginning. 

Ok,,, so lets just say I have the money,,,,, and I find an REO,,,, ( an reo is a foreclosed property that goes back to the bank if it doesn't sell at an auction) what do I do next,, what is the step by step process,,,, I've read so many real estate investment books,,,they have good information,,, but these books are mainly advertisements,,,, and you would have to make more purchases of books or go to a high priced seminar to get the rest of the details for investing in foreclosures,,,

I think you are making it harder than it is. Simply contact a real estate agent. Make an offer w/ your terms (all cash or mortgage and a due diligence (time allowed for you to make inspections and secure a loan if needed). Then wait to here back. That's about it in a nutshell.

Why would I contact a real estate agent? Should I go staight to the bank since they own the foreclosed property?

Banks are not in the real estate business. They do not have the time (nor expertise) to deal w/ investors, homeowners, etc in the selling of real estate. They would have to create a whole different division just to deal with the influx of interest and inquiries. All banks use a real estate firm to list their properties. You still may be able to talk to someone at the bank who controls their special assets, but you will end up dealing with the bank's realtor. You need to find out who reps the bank's properties.

Trust me, I wish you could just buy directly from a bank. It would be a lot easier than dancing w/ a real estate agent.

Thanks,,, for the info,,,,,,i see your point,,,, so in a nut she'll

It is really no different than a normal transaction, except the seller is the bank.  You are probably better off trying to find a private seller that is forced to sell (maybe he already bought a new place and the sale of the old place fell through) and try to lowball him.  The bank is never in a position where they have to sell, but the bank may want to liquidate their properties so you could get a deal either way

Ok Guys ,,, thanks for the info,,,,there are still a few good catches out there,,,before I start this processs I want to try and gather a list of buyers,, or other investors  before I buy an REO,,,, That way If worst comes to worst,,, I can just do a quick sell and hopefully break even,,,,,this is a long term plan I'm thinking within the next 6 to 8 months or so,,,, if you guys got more info please let me know,,,,thanks