In my reading travels, I came across a great post at Patch.com. If you’ve not checked them out, see if there’s a local one in your area. They are community news at their finest.
On this post, a local real estate agent pointed out that it’s not possible to do legal consulting for clients wishing to buy foreclosures. This is good business practice for the agent, but also highlights just what you are up against in terms of navigating the procedures and paperwork that go with foreclosure purchases. Here is her list:
- The listing may not show who the actual owner is, and you may not be able to rely on the tax records for accurate information.
- The bank will most likely require you to sign their addendum in addition to the standard contract. Such addendum is most likely written in their best interest.
- Although the buyer has the right to select their own title company, many bank addendums will state that you are required to use their title company.
- Many banks will require that you be pre-qualified by them, even if you already have a pre-approval letter from another lender.
- Banks are not required to provide disclosure as to the property’s condition as a regular seller would.
As I’ve said before, buying a foreclosed property (depending on which stage it is in as well), brings with it risks. You should also be prepared to deal with the problems left over by the prior homeowner, such as liens on the property or prior tenants not wanting to vacate.
If you are a DIY’er, a good place to start is Amazon.com, and then find a reputable listing company. (See my front page for my picks). However, the above questions are also things to be aware of. Sometimes, it’s money well spent to hire a real estate lawyer, and get a bit of help — especially if you are not a detail/contract person.
Original post: http://bellehaven.patch.com/articles/real-estate-list-what-to-consider-before-buying-a-foreclosed-home
Comments on this entry are closed.