Found a Homepath Foreclosure...

KellyOsu23

I found a really really nice house on Homepath, in a great neighborhood. We are about 8-12 months out from moving but I just descided to look.

The house is priced at 245.9K Which is about 80K under the market value for neighboring houses. I can tell from looking inside that it will need some work (chipped stained concrete flooring).

Do they negoiate on pricing? Like say 220?

I am not sure how we would go about looking to purchase while not having our house yet on the market. I heard its a long process.

If anyone knows anything about this process, it would be helpful!

=Jewel=

We purchased a homepath (but used a regular FHA loan), and it took about 45 days from accepted offer to closing. It was pretty easy, and every similar to a regular purchase.

Ours was in good shape, only a few minor fixes needed. I got it for 3% under asking and an additional 3% towards closing. You'd be asking for 12% under, which is a huge difference if the price already takes into account the work it will need. If it is currently priced $80k under market value, it's highly unlikely they'll accept much lower. It depends on how much work is needed to get it up to market value, though. The nice thing about a bank-owned is that they have no personal connection to the home, so you won't offend them by making a low offer, just to try.

You can also do a Homepath renovation loan, and get a loan  for an additional $35k (I believe) to make improvements. I haven't heard much about this personally, so I'm not sure how user-friendly it is.

Also to keep in mind - unless you can sell your current home before purchasing a new home, you'll need to qualify for both mortgages at once.

ETA: http://www.homepath.com/financing/index.html

Sapphire1002

We are about to close on a Homepath foreclosure on Tuesday and it's been pretty smooth overall.  We too, did an FHA loan and were held up a few days b/c the heat had to be repaired.   How long has the house been on the market? They tend to drop the price a bit if it's been on 30-45+ days...but it's not a huge drop at that point, initially.  The house we found had just dropped $20k, so if you like this house, hang in there a bit..  you are always welcome to offer them whatever you want, but they may counter (as normal in any home sale).  Good luck!

Justinlove

I'm not sure why you are under the impression that purchasing a Homepath foreclosure is a long process.  Our home closed in under 30 days (conventional loan).  In fact, the owning bank was anxious to close ASAP--they wanted it off their books.

Sapphire1002

Ditto. It's definitely not a long process.. our's would have been in under 30 days if it hadn't been for the heat issue.. it'll just be @ 31 when we close.

Desmond&MollyJones

We're getting ready to close on a HomePath home in the next week or two. We are getting a HomePath mortgage which is nice because it doesn't require an appraisal. That shaves off probably close to a week during the closing process and saves me almost $500 (damn jacked up rates for investment properties.) We got it for 3% under asking + 3% back at closing. And they had just dropped the price about 8% the day before we looked at it.