Foreclosures are difficult to get mortgages for?

Hi!!

many realtors are telling me that getting a foreclosure is too difficult and getting a mortgage is even more difficult.

any ideas why??

Re: Foreclosures are difficult to get mortgages for?

if you are talking about an agent, they tell you that because it is a long process and takes them longer to get their commission!!

Re: Foreclosures are difficult to get mortgages for?

It's also because most of them are "as is" so you might get surprises with an inspection.

Re: Foreclosures are difficult to get mortgages for?

and banks aren't mortgaging them?

Re: Foreclosures are difficult to get mortgages for?

I don't know the laws on foreclosures.

I thought you had to pay cash for them.

Re: Foreclosures are difficult to get mortgages for?

i wouldnt see why you would have a hard time getting a mortgage? maybe with a FHA loan it might be harder b/c the property is sold "as is"?

we were looking at forclosures and short sales but we we were going with 20% down conventional and our realtor and broker never said we'd have any problems - the mortgage has actually been the easiest thing for us to get its all the other BS that is driving us nuts!....

Re: Foreclosures are difficult to get mortgages for?

Re: Foreclosures are difficult to get mortgages for?

I bought a foreclosure.

It's hard to get one that's a really good deal b/c many of them are snapped up by people on the inside- real estate agents and their friends and families.

Buying one isn't always a long process. Mine was about 8 weeks from start to finish.

Re: Foreclosures are difficult to get mortgages for?

you realtor doesn't want to show them to you because they do not want to wait to close. Foreclosures do not take as long as people think (they are quicker then short sales) but are sold as is. So when you place an offer you are placing it blindly since typically when you get the inspection done the bank will not reduce the price after inspection to help out with the cost to repair so always factor that in with your offer. We placed two bids on foreclosures and lost them because they were not high enough.

Mortgages companies do not care what you buy as long as it is appraised for more then the mortgage unless it is a FHA loan which someone mentioned is when they require you to repair certain things before closing if they do not meet FHA standards.