At least a few times a week I get an inquiry from a would-be homebuyer who has found a Connecticut house in foreclosure on Zillow or some other foreclosure site. They want to purchase the house, and they want to know how they can do it or request my help in doing so. There are a few things you need to know:
A FORECLOSURE IS NOT NECESSARILY A HOUSE FOR SALE!
The truth is, unless the house is listed for sale or you have personally approached the owner and they have agreed to sell to you, you can’t buy a house simply because it is in foreclosure.
BUT WHY CAN’T I WORK WITH THE BANK TO BUY THE HOUSE?
Until the lender completes the foreclosure process, they do not own the property and therefore cannot sell it. It is not theirs to sell.
BUT IF IT’S FORECLOSED BUT NOT YET LISTED CAN I BUY IT DIRECT FROM THE BANK?
No. Banks are not in the business of coordinating property sales. They will not work with the average Joe to sell a house before they have a hired a Realtor to list the property and it has been placed on the open market.
SO HOW DO I BUY A HOUSE IN FORECLOSURE THEN?
- You can buy a (pre) foreclosure IF the owner has listed the property for sale (likely as a short sale) and it is listed on the open market. Seek the services of a buyer agent knowledgeable with this process.
- You can buy an unlisted pre-foreclosure if the owner has agreed to sell to you. This requires tracking down the owner, negotiating a sale, completing the proper paperwork and seeing the transaction through. Professional help will likely be needed unless you are a real estate expert.
- You can buy an REO ( bank owned) after the foreclosure is complete and the lender has hired a Realtor to list the home on the open market.
Last Updated on November 29, 2017 by Minna Reid