re: Real Estate Question: Haggling a Foreclosure

Sure, go to your lendor and get pre-approved for your FHA 203k loan. Not all lendors do them, and some of the ones that do participate aren't very "eager" to. I called around and found someone that was excited about the project as I was so that's who I went with.

Next step obviously find your property / make offer / enter contract.

Once you agree on a price with the seller and enter into a contract you can start running your contractors through the property. You don't have much time maybe 2 weeks to get all of your estimates. The appraisal can't happen until your lendor has the rennovation estimates because you get 2 appraisals. One appraisal is an "as-is" value. The other appraisal is based on the rennovations you and your GC agree on and submit to lendor.

After you find a GC with the estimate you like submit it to the lendor. She/He will then contact your GC and verify they are licensed / insured. They will also explain to your GC how the draws work to make sure your contractor is ok with how the money is dispersed.

After that the appraisal is ordered and if everything goes well you should be closing in the weeks after the appraisal.

Construction / Renovation must start within 30 days after closing and must be completed within 6 months. You can submit changes to your plans as long as both you and the contractor agree as we as the lendor.

The process goes fast, I found myself walking through the property with 2 or even 3 contractors a day trying to get estimates together for the lendor.

The faster you get the info for the lendor the faster they can send out the appraiser.

I was very skeptical of the FHA203k but after gonig through it I would recommend it to anyone that wants to rehab / rennovate a home.