How To Buy A Eagan Foreclosure

By
Real Estate Agent with IBR Realty

Ready To Buy Eagan Foreclosures?

So you want to buy one of the foreclosures in Eagan? 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 many great values in Eagan foreclosures you should be prepared for how to negotiate your offer.

City of Eagan Info

If you are planning a move to the southern metro you should really consider looking into Eagan foreclosuresCITY. With convenient access to the Twin Cities, the City of Eagan has grown rapidly over the years. As recently as the 1960's, Eagan had only about 3,000 residents, but as of the 2010 census now has over 64,000. This means that most of the housing stock is in newer, well-planned communities. Because Eagan is in Dakota County, qualifying first time buyers might want to check out the Dakota County First Time Home Buyers program. For a taste of what's happening in Eagan, go to their Community Events page.

Foreclosures are Bank-Owned

A bank-owned foreclosure can be a great deal sometimes because the bank owns it and is paying for the maintenance of it. As opposed to a property offered as 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 Eagan 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 to consider when determining how much to offer. The first is 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 (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 listing that is in poor overall 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 determine these factors as we search for foreclosures.

Financing Foreclosures

If you are going to be financing the purchase of a foreclosure there are some important things to know as well. First, the listing must be in acceptable condition to the lender n order to qualify for most mortgage loans. Properties that are in poor condition will either require a cash offer or special mortgage financing such as the FHA 203k program. 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. Finally a selling bank will never look at your offer if it includes a financing contingency and never if you do not provide a letter of financing preapproval along with your 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 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.

Ready to Find A Foreclosed Home?

If you are thinking of buying a foreclosure please send me an email or give me a call. There are many great foreclosure values out there but knowing which one to buy will take 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
caseyanderson@ibrrealty.com
Cell 651-245-1820
Woodbury, MN 55125
With a focus on Woodbury real estate and surrounding communities.

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