will a mortgage lender finance a home that is real estate owned?

frostytink asked:


the house is in poor repair on the inside, it needs just cosmetic work though, nothing structural. it is a fairly large house 4 BR and 1.5 B on 3 acres and they r asking $54,000. i know that in the area where the house is located land goes from 2,000 to 4,500 an acre. we have only a fair credit rating, but had been approved for another house that was 160,000, but it fell through because there was 40 acres of land and not much house
we do plan to live in the house and do have some cash for repairs. i’m not sure if this matters but we r first time home buyers

Willie

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6 Responses to “will a mortgage lender finance a home that is real estate owned?”

1. beachlover Says:
   July 20th, 2009 at 11:28 am

   Vernon

   yes

2. Elsa D Says:
   July 22nd, 2009 at 3:46 am

   Clarence

   Yes, they will, but only for the 54k. The bank who owns the property likely requires that you qualify through them, although you should not have a problem is you qualified for 160k.

3. MikeN7 Says:
   July 22nd, 2009 at 8:09 pm

   Keith

   I don’t see why they wouldn’t lend you the money just becasue the property is owned by a bank. It has more to do with yuor financial situation than anything else. Do you plan to live there?

4. Ben V Says:
   July 22nd, 2009 at 9:06 pm

   Judy

   There is no difference in the financing - unless the appraisal shows significant damage and the lender chooses to not lend on the property because of that.

5. Mortgageman Says:
   July 25th, 2009 at 4:24 am

   Leonard

   Yes, as long as it appraises for $54,000, the repairs are truly cosmetic and it is not a manufactured home.

6. godged Says:
   July 27th, 2009 at 6:02 am

   Allen

   In my experience, it has been about 50/50 on this. Some will, some won’t.

   It will depend on how fair your fair credit is, and what the house appraises for.