Purchasing options on foreclosures/HUD foreclosures with an already established mortgage

I BELIEVE THAT WHAT YOU ARE DESCRIBING IS TAKING OVER THE MORTGAGE FROM THE PREVIOUS OWNER. THIS IS POSSIBLE IN CERTAIN SITUATION. WHAT IS ALSO POSSIBLE IS TO GET THE OWNER TO FINANCE (BE THE BANK), THAT IS USUALLY APPLICABLE WHEN THEY OWN IT FREE AND CLEAR AND THEY WOULD TYPICALLY ACCEPT A LOWER DOWN PAYMENT THAN BANKS.

John, Real estate investments are very popular right now and therefore have attracted a lot of "gurus" that offer all kinds of detailed information sometimes at extremely high prices. As a new investor to real estate you should interview professionals in your local area such as brokers, lenders, etc. and first build a team that is experienced that you like and trust. Then together with them build your investment plan carefully considering your risk tolerance, cash and credit resources, and industry knowledge. Remember to proceed with caution if this is a new investment arena for you. The market and available properties changes daily and a competent team can guide you through the many opportunities and keep you from making big/expensive mistakes. The good news is, if done properly, real estate can outperform most all other sectors in cash on cash return, leverage, appreciation (capital gains), etc.

Hi John,
Kevan is correct the properties are free game after 45 days and you would need to start talking to banks & lenders in order to acquire the 20% of the sales price you would need to call and about their "HARD MONEY LOAN OPTIONS" where they will loan you the money to invest.


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Many foreclosures and HUD foreclosure listings are limited in sale to an owner occupant purchaser for the first 30 to 45 days they are on sale. After that time period, they are available for purchase by investors. You will need to either of cash or investor financing in place to make an offer. In order to obtain investor financing, you will generally need at least 20% of the sales price as a down payment and sufficient funds to finance the repairs.