Buying a home involves several factors, such as the location, type of house, and the size of the property. One decision that homebuyers need to make is to whether they want to purchase a short sale, foreclosure or a regular sale. Each type of sale has its advantages and disadvantages. For example, short sales and foreclosed homes are sold at very low prices but require more work in repairs.

If you’re considering a short sale, read our article “The Short Sale Process Explained in Simple Terms.” This article talks about the process of buying a short sale, as well as the advantages and disadvantages of this type of sale.

If you’re considering a foreclosed home, here’s some information about the steps of buying a foreclosure.

How to Buy A Foreclosure

  1. Find a home and do an inspection- Things that you have to decide are the location, the size, the type of home, etc. Websites such as Picketreport.com can help you find the perfect neighborhood by looking at factors such as schools, lifestyle, and safety. As you look for a home, keep in mind that when you buy a foreclosure, you’re buying it as-is. So, it’s very important that you inspect the property before you decide to move forward in the process.
  2. Get Pre-approved- By getting pre-approved, you can get an idea of how much house you can afford. It also lets sellers know that you are a serious prospective buyer.
  3. Find an experienced agent- Even though foreclosures are increasingly common, it is still important to find an agent that is familiar with the process. If the agent is familiar with the bank who owns the home that you’re interested in, even better! Each bank has a different process on how bank-owned homes are sold and having someone who is knowledgeable on this process is a big plus. 
  4. Find out who owns the home and make an offer! – If the home is in pre-foreclosure (aka short sale) your real estate agent will need to present the offer to the individual who still owns the home. If you’re looking at a home that is about to be sold at an auction, you’ll need to contact the trustee/attorney to ask any questions about the house before the auction. If the house is bank-owned, your agent will present your offer directly to the bank.

Even though getting a response from the owner may take a while, foreclosures can be a great buy if you’re willing to put some elbow grease into it. If you’re purchasing a bank-owned property, it may take several weeks or even months before you hear a response from them. Fortunately, banks are getting better at making the foreclosure sale process more effective and even faster. This is great for the banks because they don’t want to keep empty homes on their balance sheets and it’s great for you because you may be able to find an amazing deal on a house!

 

Gabriela Islas is a contributor for the Quicken Loans Zing Blog.  Stay connected with us on our Facebook page and our Twitter page to find out all the ways we’re Engineered to Amaze.

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This Post Has 19 Comments

  1. I called the tax office and they informed me that Quicken loans carries the mortgage on a home at 13312 Bunker Hill Rd. Willis Tx. 77318
    I believe the house is being foreclosed on and would like to know if it is being auctioned or sold and who could help me find out.
    thanks
    Shane

  2. There is a property that based on records that I found you are the Mortgage holder on. It appears you have forclosed on the property and it is Vacant. Whom to I inquire about this property to. There was a note on the door stating the property was vacant however the number on the note to contact is not in service

  3. I saw a house listed in the newspaper for foreclosure by Quicken Loans yesterday. Is there any way to jump the gun and talk to someone about buying this home? It is the perfect home for me in a town of about 50 people. It’s next to grandpas. I have looked at it and would be ready to start the process! 1211 Mulberry Neosho Falls Ks 66758

  4. Interested in a foreclosure owned by One Reverse Mortgage (Quicken Loans). It’s located at 209 Emerald Dr, Parrottsville, TN. Realtors cannot find info about it. Any contact info you could pass along?

  5. I would like to know where I may find the information on a home bought from an auction in Baldwin Co. Alabama. Zip code 36542. By quicken loans, I would be interested in buying it.

      1. Patrick,
        I am a Realtor with Real Estate Partners in Tennessee. We are a company that specializes in properties in East Tennessee. We belong to the MLS in both Chattanooga and Knoxville and use all the major internet search engines. Therefore, we can cover the major markets in East Tennessee with excellent exposure . I am a partner with the Grace Frank Group. Last year our group alone closed 48 million dollars worth of real estate. That is a typical annual number for us. Real Estate partners closed in excess of $100 million.
        I would like to speak with you about how to obtain the opportunity of listing your properties in our market area. Thank you in advance for your response.
        regards,
        Walt Bowman

        1. Hi Walt-

          I’m going to send your request to our team at In-House Realty who work with our real estate partners. They should be able to help you.

          Thanks,
          Kevin Graham

  6. I am interested in one of the homes you bought at auction. Its 312 high st in navarre ohio 44662. Please contact me asap about this property.

  7. I woke up this morning and saw a For Sale sign on my neighbors property. I called the Realtor and asked them how much they were asking for the house and I was told that she had a contract pending on the property. I asked her how that was possible if the sign was put up this morning, and she explained that the house was listed for two weeks. So I asked her my question again and she explained that it’s just the way things happen these days. My question to you is this. If real estate agents, working in your behalf, are not willing to advertise these properties and just go ahead and sell them to their friends or relatives. How can they be working in your behalf, and, is that legal?

  8. I am interested in purchasing one of your foreclosed properties, located at:
    849 NW 1911 Road, Lone Jack, Mo. 64070
    This foreclosure sale took place on Tuesday November 19th at Johnson County Courthouse in Warrensburg, Mo. by your agent South & Associates.
    Please advise me how to inspect and make a bid on the property.

    Douglas Ott

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