Zillow has added a “foreclosure center” where you can search for foreclosed homes in your neighborhood. The search includes bank owned homes (REO) and pre-foreclosures (a home that is getting to auction).
Here’s a snap shot of what Zillow is showing as current foreclosures in West Seattle. The red houses are foreclosures and the blue houses are pre-foreclosures.
Home buyers searching for a bargain with a foreclosures or short sale need to be extra patient. These transactions tend to take a lot longer to close as you’re dealing with transactions that will require the approval of the lenders(s) who have interest in the property.
If you’re considering buying a distressed home, you might want to check out the Fannie Mae Homepath program. Fannie Mae offers special mortgage terms if you buy one of their foreclosed homes specifically designated in the program. Fannie Mae Homepath mortgage allows as little as 10% down payment for investment property with no private mortgage insurance and no appraisal. Those buying a home to occupy can use as little as 3% down, no pmi and no appraisal. Often times, Fannie Mae has made improvements to Homepath properties so they’re in better condition than competing distressed homes.
Freddie Mac offers some incentives to buy their REO’s and I’m told they’re working on creating a program similar to Fannie Mae’s Homepath. At this time, if you’re buying a Freddie Mac foreclosures (Freddie Mac Homesteps), a buyer can use conventional, VA or FHA for financing.
If you are interested in buying a home in greater Seattle or anywhere in Washington, I’m happy to help you. Click one of the links above to apply for a mortgage or get a free rate quote.