Save money by taking advantage of a distress sale
You can expect to pay 20% to 30% less for the millions of homes that are being sold because their owners defaulted on their mortgage than for comparable houses or condos with up-to-date loans.
Although there's always more risk in buying a distressed property, you can avoid many of those costly pitfalls if you know what to look for.
Our 8 smart moves for buying a foreclosure can help you seal the best possible deal on a home that's already been seized by a lender.
Our advice on how to take advantage of a short sale explains how to buy a home from owners who are behind on their payments and in danger of foreclosure.
They will ask their lender to accept whatever you're willing to pay for their property, even if it's less than the balance on their loan, and to forgive their remaining debt.
The general rule of thumb is that lenders will accept your offer in a short sale if:
- You're willing to pay at least about 82% of the home's current market value.
- The lender will lose less money by selling you the home at a steep discount than by going through the foreclosure process and then selling the home to someone else at a steep discount.
Our mortgage calculator will look at your monthly income and expenses to determine the absolute most you should borrow to buy any home.
Our database of mortgage rates can help you find the best deal on home loans in your area.