As anyone had any experiences buying a foreclosed or preforclosed house? My wife and I are exhausting all options trying to move and just started looking online for forclosures. Is it easier to deal with a bank owned home or a house that is in oreforclosure and how do we even start the process? Is it worth it?
First let's get a few terms cleared up, I think that will help. :)
A foreclosure is a bank owned property (REO).
If it's going through the foreclosure process, there's a few ways you can buy it: 1) Via a traditional sale, if the owners have equity, just aren't paying their mortgage, and are trying to sell before the foreclosure sale; 2) Via short sale, if the owners have it up for sale but don't have equity; or 3) Via the foreclosure auction.
Most people, when they talk about buying a "foreclosure" aren't talking about any of these three. They're talking about buying a house that has already been foreclosed on, and is now an REO (owned by the bank), and will be listed by the bank like a traditional sale on the MLS.
So which are you talking about? REO? Buying at auction? Short sale?
Which is available, and best to do, will depend on what is available in your market.