How to Buy a Foreclosed Home

Video Transcript

"Hello my name is Penny Smith and I'm a North Carolina real estate broker and I work for Live Oak Real Estate in North Carolina. I would like to talk to you today about how to buy a foreclosed home. There are a lot of details to buy a foreclosed home. The first recommendation before you even go look at houses is two things, you find a good real estate agent that has done many different foreclosed home contracts because they are different than buying an existing or a new construction home. The other thing that I recommend is that you go talk to a mortgage broker first. A mortgage broker is who you will need to get everything done before you ever write the contract on a foreclosed home. Foreclosed home means that a bank holds the deed to that home and the banks are trying to sell it in the fastest possible time frame. They want 1) to know that you are already approved for a loan on that house so you need to go to a mortgage broker first. Once you find a home you will have to act very quickly. You'll have to have letter and documentation from that mortgage broker that you are loan approved, pending only a contract and you also need to understand in buying a foreclosed home that bank is not going to make any kind of repairs to that home. They are going to tell you it is as is so when you are looking for the home keep that in mind. Any type of repairs that are required for that home you will be responsible for after you purchase the home. That is how to buy a foreclosed home. There is a lot more details to it so find a good real estate agent that can help you to do the details. Thank you. I hope you have a good day."