How to buy a Burnsville foreclosure

Are you looking to buy one of the foreclosures in Burnsville? Whether you own a home now or are a MN first time home buyer, you should learn the basics before going out to buy. While there are many great values in Burnsville foreclosures you should be prepared for how to negotiate your offer.

As the sixth largest city in the Twin Cities area, Burnsville, MN is an excellent bedroom community to both Minneapolis and St. Paul. While experiencing a population explosion from 1970 through 2000 tripling in size to just over 60,000, Burnsville is now fairly well built-out and its total population has stabilized over the past ten years according the 2010 census. Large employers in the city include Independent School District 191, Fairview Ridges Hospital, and Pepsi Cola but most residents work in the Twin Cities or surrounding suburbs. Burnsville has a wide variety of real estate for sale both for the MN first time home buyer as well as the move up buyer.

A foreclosure can be a great value because as an REO (real-estate-owned), the bank is responsible for paying all the maintenance costs. As opposed to a short sale transaction, the selling bank has a big motivation to get the listing off of their books. At the same time, banks who are selling their Burnsville foreclosures want to maximize the amount they get out of the property. In the lower price ranges it has turned into a sellers market meaning that many foreclosures sell for well above the listing price! Knowing what to offer for the foreclosure is critical in terms of being successful with your purchase.

Factors in Foreclosure Buying

There are two big factors for you to consider what you will want to make as an offer to purchase. The first factor is to consider how long the property has been on the market and the second thing is the general property condition. Burnsville foreclosures that have just been listed are likely to sell for near the listing price (or even higher), while a bank that has a house that has been on the market a long time might be willing to negotiate for deeper discounts. Also, a home that is in poor condition may not be able to be financed so the bank may reduce the price far enough to attract cash buyers. I can help you work through these factors as we go out looking for Burnsville foreclosures.

Foreclosures and Financing

If you are planning on financing the purchase of a foreclosure there are some important things to know as well. First, the property must be in acceptable condition n order to qualify for most mortgage loans. Properties that are in poor condition will either require a cash offer or special financing such as FHA 203k. The selling banks will also usually limit the amount seller paid concessions towards the closing costs of your home loan. In most of these cases the selling bank will limit their contribution to three per cent of the selling price. Additionally, a selling bank will never look at your offer if it includes a financing contingency for the sale of a home and if you don't provide a preapproval letter along with the offer.

First Step: Get Preapproved

The first step in the home buying process s to get preapproved for your home loan. This means that you meet with a local mortgage lender who analyzes your credit, income, assets, and debts. In the prequalification application they can tell you what types of MN first time buyer programs you might be qualified for. This critical first part can be done over the phone and most lenders will arrange to talk with you when you're off work, even in the evenings or weekends.

If you are looking for Burnsville foreclosures please send me an email or give me a call. There are many great Burnsville foreclosure values out there but knowing which one to buy will take some time and expertise. I would value the opportunity to help you in your search for the ideal house!

Casey Anderson
Sales Executive, Licensed Realtor in Minnesota
IBR Realty
caseyanderson@ibrrealty.com
Cell 651-245-1820
Woodbury, MN 55125
With a focus on Woodbury homes for sale and surrounding communities.