Want To Buy A Dakota County Foreclosure?
Dakota County Info
Dakota County, located in the southeastern portion of the Twin Cities area, is the third largest county in MN. The larger cities of the county include Burnsville, Apple Valley, Eagan, and Lakeville. The county seat for Dakota County is in Hastings,MN. As one of the fastest growing markets in the Twin Cities area, the population has more than doubled since the 1980 census. Minnesota first time home buyers benefit from affordable home prices in the area as well as the Dakota County First Time Buyers Program.
Foreclosures are Bank-Owned
A Dakota County foreclosure can be a great value because as an REO (real-estate-owned), the bank is responsible for paying all the maintenance costs. As opposed to a property offered as a short sale, the selling bank has a big motivation to get the listing off of their books. Since there are many buyers in competition with you, you might be surprised at what you will need to offer in order to get the property. In the lower price ranges it has turned into a sellers market meaning that many foreclosures sell for well above the listing price! Knowing what to offer for the foreclosure is critical in terms of being successful with your purchase.
Factors in Buying Foreclosures
There are 2 major factors to consider what you will want to make as an offer to purchase. The first factor is to consider how long the property has been on the market and the second is the general property condition. A foreclosure listing that has just been listed for sale is apt to sell for near the listing price, while a bank that has a home that has been on the market a long time may be willing to negotiate for deep discounts. Also, a listing that is in poor overall condition may not be able to be financed with traditional mortgage financing so the bank may have to reduce the price far enough to attract cash buyers. I can help you work through these factors as we search for Dakota County foreclosures.
Financing and Foreclosures
If you are planning on financing the purchase of a foreclosure there are some critcal things to know. First, the house itself must be in acceptable condition to the lender n order to qualify for most mortgage loans. Properties that are in poor condition will either require a cash offer or special financing such as FHA 203k. Selling banks will also tend to limit the amount seller paid concessions towards the closing costs of your home loan. In most cases the selling bank will limit their contribution to 3 per cent of the selling price, or 2 per cent if you are an investor. Additionally, a selling bank will never look at your offer if it includes a financing contingency for the sale of a home and never if you do not provide a letter of financing preapproval along with your offer.
Get Pre-qualified
The first step in the home buying process is to get prequalified for financing. This simply means that you talk with a local lender who will review your credit, income, etc. In this discussion they can tell you what types of MN first time buyer programs you might be qualified for. This first step can usually be done right over the telephone and most lenders will even do this with you when you are off from work.
Ready to Find A Foreclosed Home?
If you are planning on buying a Dakota County foreclosure please send me an email or give me a call. There are many great foreclosure values out there but knowing which one takes some time and expertise. I would very much like to help you in your search for the ideal house!
Robert Phyle,CSP,GRI,RSA
Broker Associate, Realtor
Coldwell Banker Burnet
rlphyle@cbburnet.com
Cell 612-801-4657
Direct 952-997-1955
Fax 952-432-8372
7741 147th St W.
Apple Valley, MN 55124
www.facebook.com/robphylerealestate
Visit my website to find Minnesota homes for sale
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