Buying a Foreclosed Property

How you finance the purchase of a foreclosed property can vary. For properties that are being sold at auction, you may be required to provide some or all of the purchase price in cash. Factors that can influence a foreclosure purchase:

• You may have to make a cash deposit at a foreclosure auction – and this deposit may not be refunded if you are unable to secure financing for the property
• The buyer of a foreclosed property may be required to pay any outstanding liens, including property taxes
• The lender will require an appraisal to help determine your loan amount

If the foreclosed property appraises for less than your offer price, you may need to use out-of-pocket cash to cover the difference in order to secure your mortgage. Or, you can withdraw your offer - and potentially lose your deposit.

If the foreclosed property is in a different state, keep in mind that your lender must be authorized to lend in that state. TD Bank operates in 15 states from Maine to Florida. Find a TD Bank near your property

Additional considerations:

• Documentation and closing procedures may vary from state-to-state, so work closely with your loan officer, real estate professional and closing agent
• Be prepared to be present for both your property inspection and your closing
• If you can't attend your property inspection, make sure you get the report and ask the inspector any questions
• If you can't attend your closing, your loan officer can help you identify who can legally represent you