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

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