[Nyt_Angel1]

I'm really wanting to get some information about purchasing foreclosure homes in Arkansas, but the only thing I'm getting on the web is those pay for information web sites.. my credit is OK, but because I was married to someone who filed for bankruptcy while we were married it is also reflecting on my credit rating although we're divorced now.
Does anyone know where I can go to look into real estate foreclosures? I drive an 18 wheeler for a living so I can only look during the short times that I am home. Any help will be appreciated!

[Fr_Chuck]

Ok, if you want to buy foreclosure property by getting a loan, you will get a real estate agent who will show you property that banks, or one of the government agenies have for sale, it will be a little lower than value, but not the "cheap" forclousre homes you see on TV.

The real deals come from the ones sold at the court house steps, where normally the bank ends up owning it, since their bid is normally the amount they are owed, thus they basically pay thierself off and own the property, so ifyou are getting a loan, you will have to deal with them after the auction is over.

In addition where you really get the savings, is to buy it at the auction but you will need a line of credit or money in the bank to pay cash the day of the sale.

The sales at the court house steps have the ads placed in the local papers where legal notice is given. You will have to check the papers on a regular basis of any sales.

But if you don't have the cash to buy at the court house steps, you will just have to work with the real estate agent to find them being sold by the banks after the auction.

[chuff]

The real deals come from the ones sold at the court house steps, where normally the bank ends up owning it, since thier bid is normally the amount they are owed, thus they basicly pay thierself off and own the property, so ifyou are getting a loan, you will have to deal with them after the auction is over.

In addition where you really get the savings, is to buy it at the auction but you will need a line of credit or money in the bank to pay cash the day of the sale.

The sales at the court house steps have the adds placed in the local papers where legal notice is given. You will have to check the papers on a regular basis of any sales.

But if you don't have the cash to buy at the court house steps, you will just have to work with the real estate agent to find them being sold by the banks after the auction.

How do you get a line of credit for an unspeicified amount? If I go to the court house and buy house how can I be sure I will get the loan for that selling price? Is that even possible or do you just have to be wealthy enough to cover the sale price.

[Fr_Chuck]

You have to normally be wealthy enough to cover the sale price.

If you own your real home free and clear, you can often have a credit line on that value, for example you can have a credit line that allows you to automatically borrow up to a certain amount based on your credit.

So unless you can write a check for the amount the day of the sale, you can't be bidding, that is why the common person can't do it.

Often the bank or lender will end up owning it, and often you can work a deal with them after they get the loan.

[giJ]

I bought a property at a foreclosure auction last month, so I can tell you how I handled it (and what I will do differently next time). This is based on Virginia laws and procedures, though, so I don't know how much it helps in Arkansas.

In VA, auctions require 10% of the opening bid down that day, with settlement within 15 days. However, until you settle, you don't have access to the house and can't get it appraised, so financing the rest is difficult.

What I did:

1. I bought a house where the 2nd mortgage was foreclosed. At auction, I only needed $2500.
2. I had a Line of Credit on my current house and borrowed (at a high interest rate) money from other sources I have available to pay cash for the house ($270k including the 1st mortgage, plus closing costs).
3. The day after I closed, I had the house appraised.
4. I refinanced the next week. (I closed 2 days before Thanksgiving, so I lost a few days.) My mortgage company even let me use appraised value instead of purchase price for financing purpses. It's a $430k property, I financed the closing costs and took cash out for some minor repairs, and still wound up putting no cash (though many hours of work) into the purchase.

Tips:
1. Have your financing lined up. Be preapproved, have your lender ready to go ASAP. Ask your lender what kinds of options they have if you can't get an appraisal.
2. If you cannot get a mortgage without an appraisal, do not buy a house if you cannot access the funds, at least short term, to pay for the house without a mortgage.
3. After the auction, contact the current owner. Ask them if you can pay them to let you bring an appraiser into the house.
4. Do not pay more than 60-70% of the value of a house at foreclosure. That gives you money for repairs; foreclosures tend to need work. (Ask around, you will hear horror stories.)
5. Speak with an attorney to find out your rights regarding the property if the foreclosed-upon owner doesn't move out. It's NOT as easy as you think. This is an area where you want to tread VERY lightly.

It's taken me over 2 weeks to get the previous owner to move out. However, especially at this time of year, it could have taken 2 months longer then it did, so I lucked out. Hopefully, she won't destroy it on her way out. I'll know tomorrow (when she's gone). Next week, I'll get it thoroughly inspected to see what it needs. From what I've seen when I've been in the house, it's in really great shape. I'm planning on renting it out, and should be able to do so in the next few weeks. BUT, I've been VERY lucky so far.