Expert: Karyn Foley - 4/22/2009

Question
i want to know if a agency is charging you 199 dollars to help you find a preforeclosure home to just take over payments would you think that is a good idea to do it? or is it probably fraud.

Answer
Dear Jackie:  A pre-closure could be a problem.  Foreclosure is a long, laborious process which could be voided ultimately if the seller declares a bankruptcy, or if the lender makes payment arrangements allowing the owner more time and latitude to make the loan payments.  Also, it could go to sale where the requirements of available money could turn away many buyers.  It could also be then owned by the bank who would then turn it over to a real estate company to sell.  There are also notices and publications that do list homes that are headed for foreclosure, and also agents who deal with these kinds of properties who well earn their commissions by steering you in the right direction and helping with negotiations with owner and bank and take you through the entire sales process.  I suggest taking a few seminars that explain this process, and buy books that can assist you as well.  Read the local newspapers and see what companies and agents specialize in this type of transaction, and put yourself in the hands of an expert.  There are too many roadblocks to handle this yourself, unless you have had experience.  You would be competing with others who have purchased these types of properties for years, and have the available cash or on the ready financing.  Good luck to you, and also be open to a straight, normal sale, where the owner is realistic and you can make a good deal.  These types of sales are also open to home inspections, where for many foreclosure sales you don' know what you are buying, and repairs can be a major and expensive undertaking.  Let me know what happens, Karyn Foley