How to Buy a Foreclosed Property with No Money Down
Buying a foreclosed property can offer a sound investment opportunity. Since the previous property owner has made payments on the property, it is generally sold below market value. Researching foreclosed property can give you an advantage when trying to buy it with no money down. Visiting the courthouse where the original lien was recorded gives you the information on the property's value and what company currently holds the title. This gives you an idea of how much the property will appraise for and if no money down is an option.
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Instructions
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Go to the local courthouse in the county where the property is located and gather the information on the property. Get the address and lot and block numbers available for the property.
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Call the mortgage company who carries the note on the foreclosed property or the company who has it listed for sale. Ask if they will provide financing on the home. To provide a quick sale, mortgage companies often offer special financing options with no money down on foreclosed property.
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Visit a local bank that handles their loans by in-house financing. Tell them you plan to purchase a foreclosed property and request a loan with no money down. These banks have more financing options, and are more flexible with their options.
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Contact a mortgage broker. Mortgage brokers have access to several different lenders. Depending on the property value and your credit, you may qualify for no money down loan on foreclosed property.
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Make an offer requesting the mortgage company to pay your closing costs and down payment with a 203b mortgage. If the lender is aware of the request and approves it, the foreclosure company or mortgagor is allowed to pay these costs. Also, the property must appraise for enough and not require an excessive amount of repair to make this option possible.
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References
- Photo Credit property image by Philip Date from Fotolia.com
