Frequently Asked Questions (FAQs)

1) What types of foreclosures are there?
There are several different types. Most are identified by the type of loan that went into foreclosure. For example, if the former owner has a FHA loan when they go into foreclosure, that property is called a HUD Home. If the former owner has a Conventional loan, that property is called a REO, or just a plain foreclosure by many in the business. If the former owner had a VA loan, that is called a VA Foreclosure.

2) How does one make an offer on a foreclosure?
Actually, each type of foreclosures presents different situations. Many people may confuse the bid process of a HUD home with that of making an offer on a Conventional or VA foreclosure. One will .BID. on a HUD home. This means that you.ll be submitting a sealed bid against an unknown number of other bidders to try to win the bid. If one is lucky enough to .win. the bid, one may be able to purchase the home. There are no guarantees. The process depends upon what HUD will .net.. If the net is what HUD is looking for, well, one will win, but if HUD determines that the bid was too low, the property will not be sold.

3) Does it take longer to buy a foreclosure?
This varies greatly as there are tons of factors to be considered. The main issue here is the response time when something needs to be done. There is not a person at the bank who is just sitting there waiting on a phone call so they can respond to a question concerning the deal. Most inquiries take a couple of days. There are several foreclosure listing agents that have written documents stating that a response to an offer may take anywhere from 5 to 7 business days. You can see how this will slow things down.

4) Will the bank do any repairs?
As a general rule foreclosures are purchased in their .AS-IS. and .WHERE IS. condition. Most foreclosure companies will not do repairs. There are a very few exceptions. You.ll need to discuss this with Ken Tate. He can be reached at 214-215-8283 or by email at ken@ntxreo.com.

5) What if my lender requires repairs?
This can kill the deal. Each circumstance is different. You.ll need a real pro to help with this circumstance. Again, a consultation with Ken Tate is advised. Ken can be reached at 214-215-8283 or by email at ken@ntxreo.com.

6) Does the bank have a Seller's Disclosure Statement advising on the condition of the home?
Not in the State of Texas. Texas Law has stated that several homes are exempt from producing a Seller's Disclosure Statement. A bank owned foreclosure is one of those exceptions.

7) Does the bank have a Survey?
No, the bank doesn't have a survey and they will not supply you with one. A buyer must obtain their own survey.

8) What happens if there are multiple offers?
Multiple offers, with the exception of HUD homes, will generate a bid process, very much like that of a HUD Home. A notice will be sent out asking for the potential buyers to submit their highest and best offer.

9) Can a foreclosure qualify for the new "Baby K" rehab loans?
Yes. In fact, this is one of the main reasons the Baby K rehab loan was invented...But you.ll need a real pro, not only a real estate pro, but a qualified lender as well. Contact Ken at 214-215-8283 to learn more about how to purchase a foreclosure and use the Baby K rehab loan.