A guide to understanding your mortgage options when buying a bank owned or foreclosed home.

Purchasing a bank owned or foreclosed home requires additional due diligence to ensure you receive a mortgage rate that is competitive and don't have any last minute surprises at the closing table. The most important item will be the subject properties condition. You should anticipate that you will have to sign an addendum in conjunction with your purchase agreement that you are buying the home "as is" and the bank will not make any property repairs. If the property is in need of repair your mortgage lender may not sign off on the home appraisal and you could be forced to try and obtain a construction loan or potentially lose your deposit. Most bank owned home corporations also require that you close on a certain day or you could face daily penalties. If you are purchasing a foreclosed home review with your potential lender their requirements before you agree to purchase the property and shop around to different companies to ensure you end up with mortgage loan that has favorable terms.  

12-03-2007 ? LoanNetwork.com

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