Foreclosure homes in MN come in all different shapes and sizes! Some are ugly homes in need of remodeling and others are move-in ready. Search foreclosures and bank owned listings in MN!
Foreclosure homes offer tons of incentives both for first-time home buyers and seasoned real estate investors. Minnesota foreclosures are bank owned homes (commonly referred to as REO) and typically are priced lower than market price. Foreclosures range from starter homes to luxury homes in MN.
When looking for foreclosure homes in MN, you will often times hear “Foreclosure” and “REO” terms used simultaneously but don’t let that confuse you. REOs and Foreclosures are not the same thing.
What is a foreclosure sale?
The foreclosure sale differs from REO sale in a lot of major ways. Foreclosure sale happens prior to bank taking full ownership of the property that is being foreclosed on. These sales happen at a foreclosure auction where the minimum bid by the buyer starts at the unpaid balance of the mortgage, any additional accrued interest, missed payments, attorney fees and any other costs associated with the foreclosure process.
Do you need cash to place bids on foreclosure homes in MN?
To bid on a foreclosure home in MN, a buyer must have a cashier’s check in hand for the full sale amount which leave a first-time buyer or any buyer with financing at a disadvantage. The sale could include additional liens placed against the property, current occupants, assessment fees, unpaid taxes and so on that you will be liable for. So, if you don’t do your research ahead of time, you could be stuck with a laundry list of things to pay for that you never knew existed. There are lot of disadvantages and it is not recommended for a novice.
If the foreclosure auction is unsuccessful and no one ends up buying it, it becomes an REO property.
What is an REO property?
The definition of REO is Real Estate Owned. REO is term used to describe a property owned by a bank, government agency and/or government loan insurer after an unsuccessful sale at a foreclosure auction. Property becomes an REO property as a result of foreclosure which typically happens when a borrower stops making mortgage payments and loses the property to the lender.
Do you need cash to place bids on REO homes in MN?
A great advantage of REO homes in MN is that a first-time home buyer or a buyer using FHA or Conventional financing is able to place a bid on it. Lenders usually have First Look periods that make an REO home available only to owner occupants for the first 14-21 days on the market and restrict investor bids. A lot of times title is clear, previous occupants are out of the house and property is clean and even fixed up in some cases.
REO and Foreclosure homes in MN offer incredible investment opportunities worth to consider. Some of foreclosure listings need major remodel and might not be the best option for a first-time home buyer but others need only light cosmetic work to make it shine again. Sometimes, fresh paint and carpet will do the trick and others it is a job for a seasoned real estate investor. Typically, REO/foreclosure listings in MN that need work are underpriced giving a home buyer instant equity leaving room for remodeling expenses and often times capital gain.
Value vs Price
When buying an REO or foreclosure home in MN, you have to make sure that your purchase price and remodel cost is under the actual market value. Not all foreclosure homes in MN are priced fair and not all of them are a deal. REO properties in MN can be over priced and can be trouble especially for a first-time home buyer. Make sure you are working with a real estate agent that understand costs of repairs, has proper market knowledge and experience dealing with bank owned listings in MN.
REO and Foreclosure homes in MN are As-Is
It is very important to realize that when you buy REO or foreclosure home in MN, you are not getting any seller’s property disclosures with it and you are buying it AS-IS. As-is sale means that you are buying a home in current condition and assume all potential problems and repairs that come with it. Sometimes, even the most skilled home inspector is not able to identify all of the issues with a fixer upper. There are surprises and they can be costly. As-is sale removes seller’s liability from any potential uncovered problems that a property can have which leaves buyer at a disadvantage.
Call/Txt Herman Antonov at 612-840-6507 if you have any questions