first time home buyer..A few questions?

Many properties that the bank/seller is only asking for $15,000.00 require a Cash transaction. The issue may not be finding a lender that will approve a $15,000.00 loan, but whether the seller will approve/accept a contract that involves a lender. The reason is because they have already dealt with a block of issues with the property - the majority of the time they are actually LOSING money by foreclosing on the property and reselling it to a new owner. By involving a lender, the transaction is now adding even more legal matters to deal with not to mention the contract close date will need to be further in the future - and time is money. I don't intend on discouraging you - they may very willingly accept an offer that involves a lender; however, in my experience working in title and escrow for a foreclosure law firm, they will require Cash for such a low purchase price.

I agree with the real estate agent's answer: You should first pick an realtor. They can advise whether they believe an offer will be accepted, and they can also refer you to a lender.

I certainly am by no means an expert in loans or buying foreclosed properties - (I RENT) However, working in escrow I am constantly confused by buyers' choices in certain areas, but I realize it is because they are under/misinformed about foreclosed properties- Next thing they know they are in over their heads.

May I PLEASE offer a few tips:

~~ Make sure the property has been recorded into the bank's name. SO many times people sign a contract where the deed has not yet recorded back into the bank's name and then they wonder why they can not close MONTHS after a contract has been signed. Go to the County Recorder's site, perform a property search to see how the title is vested.

~~Make sure the agent you choose either specializes in REO properties or has plenty of experience. Just trust me on this one.

~~Take advantage of any inspections on the property that can be completed while the property is under contract. The bank may agree to pay for some of them. You may have inspections done and realize the property is not worth the time/money/energy to fix. A 15,000.00 house sounds great, but not if there are thousands of dollars worth of repairs needed - Also, trust the professionals! What may seem like perfectly good living conditions may actually be a nightmare.

~~Make sure once the title update is completed by the title company to take a look at the updated commitment. If you can't afford to hire an attorney, have someone experienced in that field review the commitment. All the liens should be preferably be removed, but if there are liens still on title, make sure they will be paid off at closing.

~~Get title insurance. Whether the seller agrees to pay for it or not, (sometimes they will if you use their title company) GET TITLE INSURANCE.

**~~If something doesn't seem right, back out of the contract. You may loose your earnest money deposit, but it is worth losing ~500.00 rather than paying 15,000.00, possibly stuck in a loan, potentially having unpaid taxes on the property, delinquent water bills showing up at your door, all the while being in over your head with a foreclosed property in your name that you have no idea what to do with because you bought a piece of work. Title insurance will protect you over possible issues such as new liens that pop up on the property or delinquent balances, but is it really worth all the trouble to get cleared?

Don't get me wrong - I am not discouraging you to buy the property - just know what you are getting into. Do some research about foreclosures and talk to as many people as you can that have purchased foreclosed properties. The majority of times, people are completely satisfied AND they got a heck of a deal. Just be careful.

GOOD LUCK!

You will need not less than 3.5% down plus closing cost if they will even do a loan on this small amount. The next thing is a credit score of not less than 620 but in most cases up to a 660 middle score of 3 reporting. This looks like a cash deal only to me. You may need to try a finance company or the like for that small a loan. See loans of < $75,000 will normally be in section 32 (High Cost ) and that is not allowed for the secondary market at all.

I am a mortgage banker in TN

You will need a loan officer and a realtor. Call a local mortgage lender and they will tell you everything you need.

I would first pick an realtor, they can refer a lender. Between the realtor and the lender, you should be covered.