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please educate me!

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Anonymous
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please educate me!

completely hypothetical here...im looking for my first home but i wasnt sure how the forclosure process works...

 

jon smith and his wife move from florida and buy a house for 225k in 2006.  they put 25k down on the property and take out a mortgage for 200k.  they pay the mortgage for 5 years and cant afford anymore.  the house is in forclosure....

 

in forclosure...the smith family moves back to florida and lives with parents.  the banks owns the house and the remaining balance on the mortgage is 180k....the bank puts the house back on the market for the 180?  or what the true value of the market is at the date of forclosure?  if the house was bought at the peak but is only worth 150k in todays market would that be the listing price if a bank owns a property?  am i naive to think the forclousure process is the same as jewelery stores selling unclaimed diamonds that are far below retail.  the buyer comes to the store and pays the remaining balance on an engagement ring placed on layaway?

 

im in the market for a first time home.  im pre approved for an FHA loan through bank of america. (i know a pre approval is worthless but its a start lol)....do FHA loans work with forclosure properties assuming the property is in move in condition?? 

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Booner72
Senior Contributor

Re: please educate me!


@Anonymous wrote:

completely hypothetical here...im looking for my first home but i wasnt sure how the forclosure process works...

 

jon smith and his wife move from florida and buy a house for 225k in 2006.  they put 25k down on the property and take out a mortgage for 200k.  they pay the mortgage for 5 years and cant afford anymore.  the house is in forclosure....

 

in forclosure...the smith family moves back to florida and lives with parents.  the banks owns the house and the remaining balance on the mortgage is 180k....the bank puts the house back on the market for the 180?  or what the true value of the market is at the date of forclosure?  if the house was bought at the peak but is only worth 150k in todays market would that be the listing price if a bank owns a property?  am i naive to think the forclousure process is the same as jewelery stores selling unclaimed diamonds that are far below retail.  the buyer comes to the store and pays the remaining balance on an engagement ring placed on layaway?

 

im in the market for a first time home.  im pre approved for an FHA loan through bank of america. (i know a pre approval is worthless but its a start lol)....do FHA loans work with forclosure properties assuming the property is in move in condition?? 


Yes.

STARTING: 11/24/10 EQ-584 EXP-648 TU04-595
CLOSED FIRST HOME 8/19/11 EQ-630 EXP-691 TU04-653
CURRENT: EQ-701 EXP-??? TU08-720
Message 2 of 2
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