How do I participate in a foreclosure home sell? is as easy as buying a new house?

Well, no it's not as easy as buying an already lender owned home or a new home. Basically, the legal owner is still in the loop for all negotiations. So when your REALTOR offers or submits a purchasing agreement, the owner first has to approve it. He may counter it or refuse it or simply do nothing. If he finally accepts your offer, he then has to go to his lender and submit it to them. They may say NO WAY, counter the offer or just stall for awhile. If they do respond, then the owner may or may not like the lender's counter offer to him. After all, he may be liable for any short fall. Worse case, he may be issued a 1099 for the difference in what he owes them and the price the house sells for. He'll have to pay tax on that amount even though he never physically received the money. Naturally, during this time frame, the regular foreclosure process still moves along.


Many owners simply abandon their homes, thus you see maintenance and upkeep go out the door. Then because he is still legal owner, the lender still has to keep him in the loop as far as notifications, etc.


Simply put, it's a very long, drawn out process and is very frustrating. Personally, it's not worth my time and effort to pursue those types of home sales.


Properties that have already gone through the foreclosure process, known as REO's (real estate owned) , regular home sales and new homes are so much easier and faster.


Unless you know, understand and can live with delays, etc for several months, Short Sells (as they are known) on foreclosed homes are a real pain the neck. Eventually, in most cases, the potential buyer gets really upset with his agent, the home owner, their agent, the lender and so forth.


I know of homes where an agent can't even obtain entry to measure a room because the owner refused entry. Others refuse to move out which makes actual eviction process another reality. Some are so irritated by being forced from their homes, they do extreme damage to them as they finally leave.


These homes are often sold, AS-IS, so you could be getting a real fixer upper.


Personally, I'd stick with an REO (these are vacant and you can see what you're getting into), regular home sales and new home sales. A lot less headache. Just my personal opinion.How do I participate in a foreclosure home sell? is as easy as buying a new house?
The basic differences in my experience are waiting for a response from the lender, and the disclosures that basically say you are buying the house as is and you cannot sue the lender for anything.

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