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We have been looking and calling for weeks and we finally found a house we are REALLY interested in! I did research online and it's a foreclosure, the person my mom called said its under contract so we have to call the contractor? which that confuses me. The sign on the door says to find your own real estate agent. We have a friend in real estate that said she could help us find a lease to own like we originally wanted but this house is super nice and dirt cheap because of it being a repo. Can a real estate buy the contract and sell it per lease to own? does it work that way? [that would be nice incase my mom cant get qualified by a lender] but of course buying would be better. ALSO- do you have to pay a real estate agent to talk to them and get help? or do they not get paid until you get the house. how does this work?
That it is under contract means there is a contract in place but not all the conditions have been met so it isn't finalized. I don't understand "Can a real estate buy the contract...", a real estate what? Who ever lent the money to the previous owner owns the house now. Let's say it is a bank. Banks aren't in the business of owning homes, it is a problem for them which is why foreclosed homes sell for so cheap, banks will even take a loss on them. They are also dealing with a very large number of homes and don't have the manpower or time to walk people through the purchasing process, better for them to deal with professionals which is why the sign says get a real estate agent. The bank isn't interested (trust me) in rent to own. Your first step is to find out if your mom can get a loan and for how much. Then, if your friend isn't a licensed real estate agent find one. You don't have to pay the real estate agent out of your pocket, their fee is included in the purchase price of the home.
Normally "under contract" in the real estate world mean that someone has made an offer on the property. If this is the case, you might consider making a back-up offer. Your offer would be considered if for some reason the other offer failed in some way. Normally a real estate agent is paid by the seller. The seller has agreed to pay a real estate agent, called the listing agent, a certain percentage of the sale price. If this agent sell the property then this agent would get the full commission. If another real agent find a buyer for the property, this is called the selling agent, then the listing real estate agent would normally split the agreed no commission with the selling real estate agent. If you obtain the services of a real estate agent, that assist you in locating a house and there is no commission agreement signed by the seller then you would be responsible to pay the real estate agent you hired. In order for you to purchase a property you would need to be pre-approved. You might do this by contacting a local mortgage lender that is authorized to do FHA, Hudson and conventional mortgage loans. You would be required to provide pay stubs, bank statements, and other documents in order to be pre-approved. Once you contact a mortgage loan officer you would be provided a list of documents required. Once you are pre-approved you would know how much house you are able to afford. You would also be able to employ the services of a real estate agent to assist you in locating a house for you to purchase. Getting pre-approved is the most important step in the purchase of a house. Why would you want a lease to own? Lease to own purchases lean to much toward the seller as oppose to the buyer. I hope this has been of some benefit to you, good luck "FIGHT ON"
"under contract" means that a bid has already been placed on the house and accepted, the house is in escrow and scheduled to sell. They might take back up offers. You do not need to pay a realtor for general information and get initial help with purchasing a house. Realtors are typically paid by the seller but it different for some foreclosuers. Foreclosures are not sold under market value = if it "dirt cheap" that means there is something going on with it = it might not be advertised at the real price or it might have back liens that must be paid, or all the plumbing pipes have been removed or whatever.... Rent to own places rarely work out - google alll the horror stories. If you aren't prepared to do a traditional purchase, you should wait until you are in a position that you can.
The bank (owner) of the property will NEVER!!!!!!! do a lease option on the property. NEVER. And the agent would have to actually purchase the property and then resell it to you under a lease option. I'm 99.9% sure the agent will not want to do this. In addition, the house is already under contract with someone else. This means that it's basically sold.
Buyer NEVER pays the realtor the seller does. No there is NO cost. Suggest you borrow a book from the Library on buying your first home. This way you understand the process and can ask intelligent questions