Financing a Foreclosure in Manhattan, KS

Get social with the Best In Blue!
hello world!

Financing a Foreclosure

Once you have found an agent specializing in foreclosures, it is time to understand your financing if you are not paying cash. Foreclosure properties will sometimes go fast because they are most likely priced to sell. After all, the bank wants to get them off their book quickly to remove that asset. If you are getting a loan, you want to be pre-approved and ensure your financing will work on your chosen property.

The buying process is very different and can take longer to close. You may not be able to get a loan on some of these properties, and many people do not understand that because they think, if there is a loan on it now, why can't I get a loan on it? The answer to that question is because of the property's condition. When the property was purchased, it was most likely in much better shape than when it was foreclosed on. With that being said, it may not qualify for a traditional loan.

This Is Why Having the Right Agent Is Essential

Agents will know what guidelines must be met for each type of loan you may want on a property. In our area, we see a lot of VA foreclosures because of the proximity to Ft. Riley. Many buyers think they can get a VA loan because it is a VA-foreclosed property. That is often not true since the VA has stringent guidelines on the condition of a property before a veteran can purchase it. For example, the VA foreclosed home may have had a VA loan on it when it was purchased, but because of the current condition as a foreclosure, it will not pass for a new VA loan. This is not true in all homes, as some have been kept up, but most need repair.

Navigating the Foreclosure Financing Process

Once you have found a property and are ready to make an offer, you must ensure your agent knows the correct process for the company that owns the property. Once you make an offer and it is accepted, you will have to put down your earnest money deposit. The foreclosure company will most likely set the intense money amount as many of them have a minimum they will accept. If you make a cash offer, most will require 10% of the purchase price as earnest money. You must ensure you understand what you are buying before this point because once you sign the contract, you are in this until the end.

A foreclosed property must typically be bought with cash or a conventional loan with a sizeable down payment. Then, the buyer will be responsible for all repairs found during inspections. For more information on the inspection process, click here.

Get social with the Best In Blue!
Subscribe For Updates
Stay in the loop with the most recent Kansas Real Estate news by subscribing to our newsletter!
Subscription Form

become an agent in blue

Learn about a rewarding career as a Coldwell Banker Real Estate Advisor
Coldwell Banker Real Estate Advisors has been helping people buy and sell homes for over 35 years. In that time, we`ve earned the respect of National and Local Organizations for both our standards and ability to get the job done. We are dedicated to the commitment and professionalism needed to be respected by our clients, customers and peers.
Find A Home
ManhattanJunction CityWamegoSt. GeorgeOgdenRiley
Become An Agent
Get started with your Real Estate career with Coldwell Banker Real Estate Advisors
Careers
Stay Updated
Stay in the loop with the most recent Kansas Real Estate news by subscribing to our newsletter!
Subscription Form
The information being provided by Manhattan Association of Realtors is for the consumer's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumer may be interested in purchasing. Any information relating to real estate for sale referenced on this web site comes from the Internet Data Exchange (IDX) program of the Manhattan Association of Realtors. Real Estate Advisors is not a Multiple Listing Service (MLS), nor does it offer MLS access. This website is a service of Real Estate Advisors, a broker participant of Manhattan Association of Realtors. This web site may reference real estate listing(s) held by a brokerage firm other than the broker and/or agent who owns this web site.

The accuracy of all information, regardless of source, including but not limited to open house information, square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection by and/or with the appropriate professionals. The data contained herein is copyrighted by Manhattan Association of Realtors and is protected by all applicable copyright laws. Any unauthorized dissemination of this information is in violation of copyright laws and is strictly prohibited.
Designed by MKS Web Design
Copyright © 2024 All Rights Reserved
Terms & Conditions
menu