Buy A Foreclosed Home
Buying a diamond in the rough?
See which loan options work best for you and how to prepare for the process.
Will your plans work with your budget?
What you need to know
|Expand What's the difference between a foreclosure and a short sale?|
Foreclosed homes are usually owned by a bank or other financial institution after the previous homeowner was unable to meet their mortgage payments. The proceeds from the sale of a foreclosed property are used to pay the outstanding mortgage loan.
A short sale can be an alternative to foreclosure for a homeowner – especially in instances where the homeowner's mortgage is higher than the home's current value. In a short sale, the lender agrees to accept less money than is owed following the sale of the house.
NOTE: Due to seller considerations, closing times for foreclosures or short sales may take longer than conventional home sales; your mortgage advisor will provide an update on timing.
|Expand Do I need to pay cash for a foreclosure or can I get a mortgage?|
How you finance the purchase of a foreclosed property can vary. For properties that are being sold at auction, you may be required to provide some or all of the purchase price in cash. Factors that can influence a foreclosure purchase:
If the foreclosed property appraises for less than your offer price, you may need to use out-of-pocket cash to cover the difference in order to secure your mortgage. Or, you can withdraw your offer – and potentially lose your deposit.
|Expand What if I live in a different state from where I'll be buying the foreclosed property?|
If the foreclosed property is in a different state, keep in mind that your lender must be authorized to lend in that state. TD Bank operates in 15 states from Maine to Florida – find a TD Bank near your property.
Have questions? Ready to apply? We're here.
Talk to a mortgage advisor at 1-800-822-6761