Do I have to have cash to buy a foreclosure?

House InsuranceIf you’re considering buying an REO (real estate owned) or foreclosed property, you may be under the impression that you have to pay in cash. While there are many benefits to an all-cash purchase, it’s certainly not realistic for many buyers. And fortunately, it’s not necessary!

Myth:
You must purchase a foreclosure property with cash.

Truth:
Financing an REO/foreclosure is just like financing a non-distressed property.

Unless the listing states that there is some reason why a property cannot be financed, then you should be able to finance it just as you would any other property. If the home needs extensive rehab work, that could be an issue. But there are loan products that take this into account and will lend you a bit more money to help you get the work done.

But generally speaking, most foreclosed homes can be financed in the same way that a non-foreclosed home would be financed.

If you’re in the market for a home a distressed property is a great option to consider. Metrowest is your ultimate resource for distressed properties in Denver – we specialize in these types of transactions and can help every step of the way. Give us a shout – we’d love to help.

Ken Blevins

About Ken Blevins

Ken Blevins, CEO of Metrowest Real Estate Services, is a veteran in mortgage and default servicing with more than 24 years of experience in collections, foreclosure/bankruptcy, loss mitigation and real estate disposition (REO). Blevins was an original co-founder of Metrowest in 2003, a Real Estate Brokerage and Services Company focused on the resale, recovery and liquidation of distressed real estate in Denver, Colorado and surrounding metros. Blevins assumed the role of CEO in January 2014 and provides strategic direction and has management accountability for the day-to-day operations. Under his direction, Blevins drives all default management operations to maximize asset value recovery and reduce loss severity through a strategy focused on customer service and state of the art technology. Blevins has 18 years of direct operational experience in all facets of REO Asset Management having managed large national REO Disposition contracts for Fannie Mae, Freddie Mac, Wells Fargo, JP Morgan Chase, CitiFinancial, GMAC Mortgage and other various financial institutions. Blevins specialties include REO asset management, real estate investment, bulk REO acquisitions and distressed asset recovery and liquidation, and he has directed the resolution and liquidation of over ten billion in institutionally-owned residential real estate.

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