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Can I negotiate to buy a home during a foreclosure?

So, you’ve found a home in foreclosure that you’re interested in. Can you buy it out of foreclosure or do you have to wait for auctions and all of those other logistical hurdles to pass?

The answer is yes, you can buy a home out of foreclosure. However, it’s a delicate balance and requires getting all the parties to agree on it.

Think of it this way: the homeowner is in debt and can’t pay the bills, the bank is carrying a large tab and wants to get paid. If you’re interested in the home, you must essentially be the mediator to get these two partners to dance.

In theory, that sounds easy enough, but you’d be surprised at how temperamental these parties can be. The first step is to contact both the homeowner and the lender. When you do so, project a confidence that puts everyone at ease — and make it clear that your goal is to make everyone happy: you want to get the homeowner out of debt, you want to get the lender out of the bad loan, and you want this home you like. Everyone wins, right?

In most cases, the easiest part is getting the homeowner on board. If they’ve done their research, they should understand the benefits of short selling instead of going into foreclosure. So how can you win over the lender?

Well, that’s the trick, isn’t it? Some lenders aren’t even negotiable on this point. For the ones who are open to it, it’s about making them feel like their needs are getting met and that they will be better off in the end (so in some ways, it’s not unlike dating!). The best way to approach this is to hire an agent who has experience in this issue. They will know the right channels to go through and the right way to present your case so that everyone understands the mutual benefits involved.

Buying a foreclosing home can definitely provide you good value for your money, so it’s worth exploring if you are in the market, either for a new home to live in or for an investment. Just remember that there are experienced agents that specialize in these unique situations, and they can answer your (probably many) questions going into it.

Search for foreclosure homes www.bestreohomes.com

The views published here are the opinions of the writer and are not a substitute for legal counsel.


Posted: Monday, March 1, 2010 2:02 PM by Israel and Rachel Gonzalez

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