Lenders

Lenders

Definition

Banks and other financial institutions that issue loans to prospective homebuyers. Most lenders are banks, but can also be mortgage companies or even government entities.

Lenders Provide Financing for All Situations

Lender Institution: Freddie Mac

Getting the best financing from lenders is an important step in getting great deals on foreclosed homes. There are many different types of lending institutions doing business today, including conforming, subprime, government backed, and private hard money lenders. Wholesale lenders often provide lower interest rates than retail lenders. Bad credit lenders specialize in writing loans for people with less than perfect credit. Commercial lenders are perfect for investors that want to purchase residential rental properties or office buildings.

Mortgage Lenders Are Not All Equal

Finding the right mortgage lenders can save you a lot of money. When you're investing in foreclosed properties, you need to find foreclosure lenders who understand the process and can offer you creative financing solutions. Now you can use our tools and resources to find the very best home mortgage lenders that provide the lowest rates, best terms, and lowest closing costs available. Your next house is a great investment. Make sure you don't blow it by paying too much for high priced loan lenders with inflated costs and unfavorable terms.

FAQ about Lenders

  • It depends. If there is equity in the second mortgage, they can include it in a foreclosure. If not, which is mostly the case these days, they will leave out the second mortgage in a foreclosure, which frees them up to pursue collection in civil court.

  • Some states are recourse states, which means lenders in those states can sue you for the difference between what you owe and what the foreclosure nets at auction. Some states are non-recourse states; in these states, once you are foreclosed on, the lender has no legal recourse to sue.

  • The best way to buy a foreclosure from a lender without it going to auction is to use your real estate broker. Have him or her contact the lender about the property and inquire as to the asking price. If you can provide the payment and spare the bank the hassle of going through foreclosure, they may be willing to work with you.

  • Only if the lender can prove the property is abandoned. If you still live there, you can remain on the premises until the auction has been held.

Go to the Foreclosures FAQ page

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