Buying St. Paul Foreclosures

Real Estate Agent with IBR Realty

Want To Buy A St. Paul Foreclosure?

So you want to buy one of the foreclosures in St. Paul? Whether you own house currently 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 Saint Paul foreclosures you will want to be prepared for how to negotiate your offer.

City of St. Paul Information

As both the capitol of Minnesota and the county seat of Ramsey County living in the city of Saint Paul is filled with things to do. Popular attractions such as the Xcel Energy Center and the Science Museum of Minnesota make St. Paul a popular destination for both its residents as well as those living in surrounding suburbs. Employment opportunities abound in St. Paul with major employers such as Ecolab, Lawson Software, Gander Mountain, and nearby 3M. St. Paul housing can be especially affordable for first time home buyers through the Ramsey County's First Home program. Residents enjoy popular regional events such as the Minnesota State Fair and the St. Paul Winter Carnival. If you thinking of buying or selling a home in St. Paul please send me and email or give me a call as I'd love to help you accomplish your goal.

Foreclosures are Bank-Owned

A St. Paul foreclosure can be a great value because the bank owns it and is paying for all of the upkeep and property taxes. 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 involved in selling a foreclosure 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.

Factors in Foreclosures

There are 2 major factors to consider what you will want to make as an offer to purchase. The first is how long the property has been on the market and the second thing is to analyze the overall condition of the home. Saint Paul foreclosures that have just been listed are 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 home that is in poor 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 work through these factors as we search for foreclosures.

Financing and Foreclosures

If you will need a mortgage loan to buy the foreclosure there are some critcal things to know. First, the listing must be in acceptable condition to the lender in order to qualify for most loan programs. Foreclosure listings that are in poor condition will either require special financing such as FHA 203k or a cash offer. The selling banks will also usually limit the amount seller paid closing costs towards your home loan. In most cases the selling bank limits the contribution to 3 per cent of the selling price, or 2 per cent if you are an investor. Finally a selling bank will never look at your offer if it includes a financing contingency and if you don't provide a preapproval letter along with the offer.

Get Preapproved Today

The first step in the process of buying a home is to get prequalified for financing. This simply means that you talk with a local lender who will review your credit, income, etc. In doing so they can tell you what types of Minnesota first time buyer programs you might be qualified for. This first step can usually be done right over the telephone and most lenders will even do this with you when you are off from work.

If you are looking for St. Paul foreclosures please send me an email or give me a call. There are many great St. Paul foreclosure values out there but knowing which one takes some time and expertise. I would very much like to help you in your search for the ideal house!


Casey Anderson
Sales Executive, Licensed Realtor in Minnesota
IBR Realty
Cell 651-245-1820
Woodbury, MN 55125
With a focus on Woodbury real estate and surrounding communities

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