Foreclosures
I am as new as you can be so please be patient with my questions...with bank owned foreclosures, what happens if you pay of the rest of the loan??? do you become the owner after that????
I am as new as you can be so please be patient with my questions...with bank owned foreclosures, what happens if you pay of the rest of the loan??? do you become the owner after that????
it all depends if you bought it at the foreclosure auction or pre-foreclosure directly with the owner.
If you buy it on the auction then you will be competing with other bidders, which the minimum bid is the loan amount, but remember that taxes will not be erased, and you still have to pay it if there is any governmental liens due or senior liens. (for example, if the foreclosing party is a second mortgage then the first mortgage survive)
The same goes to pre-foreclosure, but you may want to add a certain amount to cash out the buyer, but I have seen people just want you to purchase the house with the loan amount, so they wont get a foreclosure on their credit report. Again, dont forget to do a title search to see if there is any other liens attached to the property, because you will be liable for them...
Also dont do inspecting of the house yourself, always hire a home inspector to do that (for a newbie), unless you want to burn a hole in your pocket after purchasing and found out that the roof is about to implode