The low down on buying a foreclosed home

On the surface a foreclosed home may look like a bargain, but the reality is the process isn't pretty, according to a recent story in the SF Chronicle. Here's the low down:

Be prepared for fixer-uppers. "That's because banks don't do more than a very basic clean-out of foreclosed properties," the story says. "They don't paint. They don't replace carpets. They don't remodel." These homes will not have curb appeal and will be sold as it.

Expect to go up against multiple offers. You're not the only one who wants a deal.

You must be qualified to get a loan, which is much much harder to do now than two years ago. Get pre-approved to show you mean business.

When shopping for a loan, consider buying one from the bank that owns the foreclosed property you are interested in. "If two offers come in, and one is $3,000 less but they will take out the mortgage with them (the bank-owner), that's more valuable to them," the story says.

Short sales and auctions are a different animal so know the difference.

Search Bay Area foreclosure listings, courtesy of SFGate, the Chronicle's online site. The Daily News also has a foreclosure database that lets you search by address, zip code or city.

Thanks, Sarah!