I read an article in yesterday’s paper about bus tours for houses in foreclosure going on around the country. Odd thing- sort of like the dead actor tours in Hollywood or Da Vinci Code Tours in Rome. Alas, someone will always try to make a buck off other’s grief and misfortune, but this is not the point of this blog entry. If you are considering purchasing a home that is currently in foreclosure, lenders are cracking down on financing the mortgage for same. Below I listed a few things to consider and think about while you ride the bus:

• Lenders will only allow 1st position liens only, no 2nd mortgages
• Appraisals must be ordered through the lender and will be scrutinized
• Foreclosure process must be complete before the sale goes through
• A full home inspection is required for bank owned properties and must be included in the loan application package
• Current residence must be sold- you cannot buy a new house before you sell the old one
• A full lien search will be required in the title report, including mechanics liens on the house and current owner

Although there are some good deals out there (found from other peoples’ misfortunes), buyers must know that it is not an easy task to get a mortgage on these purchases. Go into the deal with eyes wide open, an army of expert professionals working for you and a solid out clause in the contract. If the deal seems too good to be true, it probably is- so be prepared to walk.