 |
|
Before showing up at the foreclosure auction, you want to ensure that you have the financing in place to pay for the property on which you plan to bid. The first step in seeking financing is to check your credit score. We recommend Equifax Score Watch
Some lenders will not finance foreclosure homes, but many others will. It is suggested that you contact various lenders to see which of the willing lenders has the most competitive rates. You may also consider using a mortgage broker who will work with multiple lenders. As a starting point, we recommend
The best way to ensure that lenders will lend to you is to provide a significant down payment. Usually with foreclosure homes, you want to put a deposit down of at least 20 percent.
Another option would be to assume the seller’s loan before a foreclosure happens. This benefits you, the homeowner, and your lender. This would avoid foreclosure upon the loan, and both the lender and the property owner would avoid any foreclosure costs. Remember, however, that this option is only available prior to foreclosure happening. To be assured that you have the necessary latest up-to-date knowledge, we recommend you use Default Research pre-foreclosure listings.
