This is very helpful to me, KyRealtor.

Many thanks.

Most of your everyday realtors are clueless when it comes to foreclosure properties. They dont understand the constraints the bank puts on buyers and almost all of them gasp for air once a contract is accepted and the contract "addendum" is then given to them. When submitting offers I'm always hearing.."Talk to them, see what they'll come down to". Banks are not your everyday sellers that they encounter hence their mindset is all skewed when dealing with them. So the best advice is to seek out an experienced foreclosure realtor who knows how the banks work, and knows the processes involved.

Is it possible to purchase one of these properties with sellers assist and 100% financing?

Joseph... most of this thread is about properties that have been forclosed... and area now REO. In those cases, it would be very rare that the new holder of the deed would have any interest in financing. Most only buy mortgages in the secondary market and do not make loans directly... even if they may have the same basic "name" of a lender that does. They are a separate entity. You have to get your own funding.

In the pre-foreclosure stages, it all depends on what stage your in. For someone in any of these, they are behind in payments and actions has been taken against them. They will typically have no ability to "assist" a buyer in financing... they have none and unless the buyer is offering enough to pay off the existing mortgage and all fees and legal cost the typical defaulted owner has no ability to sale with a clear title and the foreclosure would continue... even if you purchased it!

Alternative so exist, including reinstatement, loan modifications and short sales. Each requires the defaulting borrowers co operation and usually the lenders cooperation and or agreement. These all must be completed prior to the actual foreclosure sale.

I think fc's are full of minefields for most buyers. I would really recommend getting w/an agent who actually understands the process or at least finding some *legit* seminars/mentors. I don't mean the *Make a Trillion Dollars a Month* seminars, more like the ones offered by local boards of realtors, title co's, etc. You may need to join your local board as an affiliate if that is permissible in your area.

Also, the fc does not wipe out *all* mortgages, it wipes out the one being fc'd upon. Thus the buyer could get stuck w/a property that is still subject to another mortgage, and as was pointed out, tax liens, etc.

I am sure some sellers would be happy to offer seller financing! Unfortunately, you could well end up sending the seller a few checks which seller keeps as a gift and the lender forecloses leaving you with nothing. And such a sale would probably trigger the due on clause anyway.

And as also has been pointed out, many if not most of the current batch of fc's will be over encumbered, ie more is owed on the property than it's worth. That is why they r being fc'd rather than sold to pay off the mortgage.

I also agree about not being able to see the interior, it is common for owners being fc'd on to trash the place out of frustration/anger. and you may well inherit tenants or owners who have no plans to vacate, buying yourself an eviction action.

And truthfully if you do happen to find a true bargain (ie the debt load on the property is below 80%, desirable area, etc) the pros will snap it up. There are people who do this for a living and know how to do it right.

I realize this fc thing is all the rage, I get calls all the time, but it's not really the goldmine many believe/hope it to be.

I still think working w/an experienced agent or mentor is the wisest course.

Go to the REO/Foreclosure section on this site and you could probaly find a good agent to work with you. There is money to be made in foreclosures but you could also end up being in the same boat if you arent careful!

If anyone wants a referral to a good foreclosure buyer's agent and they haven't found a member here who covers that area, as part of the largest referral network I can do a FAST and free referral -- you can PM me.

(I'm a Coldwell Banker agent in the Columbus OH area and well..we have a lot of foreclosures here. Can be a good place to invest.

Hmm -- and although I really don't post on the BPO board here, I do 'em so I'll consider myself a regular. Been reading here for over a year anyway.)