How Do You Qualify To Purchase Foreclosed Houses?
Buying after a foreclosure is in many ways no different than buying any other house. But often there is more red tape to sort out, you may stumble into unexpected surprises, and the competition can be fierce when buyers clamber for a bargain. To compete and hold the deal together after the selling bank accepts your offer, make sure your bank thoroughly checks your qualifications, and then get your qualification in writing, otherwise disappointment awaits you. Get a “proof of funds” letter from your bank, credit union or investment broker, if you plan to pay cash. It should clearly indicate how much money you have available right now; money that is tied up in CDs, bonds, or other financial instruments that cannot immediately be converted to cash don’t count. You can use a letter from a bank at which you have an established home equity line of credit. Talk to a bank about mortgaging a foreclosed house, if you plan to finance the purchase. The bank can run your credit report and tell you
