Need help understanding steps to buy a foreclosed property

[Pankaj Rastogi]

I am looking for help in understanding steps to buy foreclosed property in California. My questions specifically are:

1. How to identify a suitable property

2. How to initiate the buying process? Is home appraisal and general inspection allowed during pre-foreclosure?

3. Do I need to involve a foreclosure specialist agent or any real estate broker will do?

4. What if the property is occupied by a tenant?

5. Will I assume any debt balance?

6. What are the key pre-cautions and observations to keep in mind before making an offer

7. Do banks offer loans to buy a foreclosed property?

8. I have read that it is better to buy in pre-foreclosure state. Would appreciate some detailed reasons/examples.

[Ron S.]

A "Foreclosed" property is the same as any other open market transaction. The only distinctive difference is that instead of a consumer as the seller, you have a bank (investor) as the seller. Any agent will do. There is no specialist for a REO property.

Your bullet point, "8" stated "pre-foreclosure", so, do you mean pre-foreclosure or do you mean foreclosed? You have two different situations here and they are vastly different.

If instead you mean preforeclosure, contact the owner. That's the way it works. Sit down, strap in, have a cocktail and relax because it's going to be a long ride if you are going to delve into the preforeclosure world.