How to buy a Mahtomedi foreclosure

Are you thinking about buying one of the properties in foreclosure in Mahtomedi? Whether you own a home now or are a Minnesota first time home buyer, you will want to learn the basics before going out to buy. While there are plenty of great values in Mahtomedi foreclosuresyou will want to be prepared for how to negotiate your purchase transaction.

Mahtomedi: City Information

Mahtomdedi is a beautiful small outer-ring suburb of Saint Paul. Originally a small community of cottages and summer homes on White Bear Lake, Mahtomedia has grown to a stable population of about 7,600. With plenty of affordable real estate available, this is an excellent location both for the first time home buyer as well as a luxury lake home buyer. Conveniently located in Washington County, homeowners here have a 25 minute commute to downtown Saint Paul. If you're looking to buy or sell in Mahtomedi, please give me a call.

Knowing What To Offer On A Foreclosure

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, the selling bank has a distinct motivation to get the home off of their books. At the same time, banks who are selling their Mahtomedi foreclosures want to get the highest value they can 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.

Foreclosure Purchases: Things to Consider

There are two big factors to consider when determining how much to offer. The first factor is to consider how long the property has been on the market and the second is the general property condition. A foreclosure that has just been listed is likely to sell for near the listing price, while a bank that has a home that has been on the market a long time may be willing to negotiate for deep discounts. Also, a listing that is in poor overall condition may not be able to be financed so the bank may have to reduce the price far enough to attract cash buyers. I can help you determine these factors as we search for Mahtomedi foreclosures.

If you will need a mortgage loan to buy the foreclosure there are some critcal things to know. First, the property must be in acceptable condition n order to qualify for most mortgage loans. Foreclosure listings 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 closing costs towards 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.

Get Preapproved for Mortgage Financing

The first step in the home buying process s to get preapproved for your home loan. This simply means that you talk with a local lender who will review your financial situation. In this discussion 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 even do this with you when you are off from work.

If you are planning on buying a Mahtomedi foreclosure please send me an email or give me a call. There are many great foreclosure values out there but knowing which one takes some time and expertise. I would value the opportunity to help you in your quest for the perfect purchase!

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 real estate and surrounding communities