Things You'll Need:
- internet access
- persistent and patient
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Step 1
First review your finance, and make sure that you have at least 20-30% down payment available for mortgage. Talk with your mortgage lender to figure out your price target for the house under short sale or foreclosure.
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Step 2
Identify a neighborhood that you will focus on. It should be an area that you are familiar with and close to your home or work. Get to ZipReality website (www.ziprealty.com), and set up search for foreclosure property.
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Step 3
Find a real estate agents that is familiar with foreclosure purchase. Also check with local lending institutions and government agencies - such as the Federal Housing Administration, Veterans Administration or Department of Housing and Urban Development - about foreclosed properties in your area.
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Step 4
Once you find the property you like, put in the offer as soon as possible. If your offer is accepted as top offer, do not assume that you can close the deal quickly. The original owner usually will accept your offer, but it takes the bank a long time to work through the paperwork.
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Step 5
Many times, the bank will accept your offer verbally, and then come back with a counter offer. Once you get the counter offer from the bank, figure out what's the highest price you are will to pay for this property. Also figure out what's the cost for the bank if they have to put the property back to the market.
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Step 6
Be persistent and patient. It takes 3~6 month to close the deal. Follow up with your real estate agent and bank at least every other week. At work closely with your mortgage lender to be prepared to lock in any low rate for your new mortgage.
