Buying a foreclosure is risky enough without the protection and assistance your own buyer's broker can provide.

Foreclosures offer few, if any assurances from the seller.

You'll sign away more than a few sticks from your 'bundle of rights':

Title may not be clear--or seller may only provide a limited warranty deed.

There may be mechanic's or workmanship liens recorded against the property.

Outstanding sewer or road assessments may add thousands of dollars to your 'bottom line'. (Many REO companies will ONLY pay the accrued fees DURING THEIR OWNERSHIP--not prior to their acquisition)

HOA liens on the property that preceded the seller's ownership, but were not cleared--may not be. (Check the conditions in those bank addendums!)

There may be transfer fees for septic tank, HOA etc that seller will not pay or contribute toward paying.

There could be unpaid utility bills that 'someone' needs to clear up.

The property may have not been surveyed properly.

The lot may have been illegally split from a larger parcel, and a well or septic tank connected to the home may now no longer be on the same lot!

There may be unpermitted construction or renovation.

The property may not be insurable.

There may be a past history of pest infestation.

Utilities may not be on (and nowadays, appraisers REQUIRE them to be) and seller will not turn them on.

and so on, and so on . . .

The seller's agent may have hundreds of these listings

they have never personally 'walked' or viewed. Often, assistants photograph, clean, rekey and put up signs.

To the seller, the 'asset' is just a number. But to you, it's going to be your home for many years!

 

Your buyer's broker, on the other hand, can help you:

  • Obtain building permit information
  • Obtain septic or well permit information
  • Investigate whether there are clouds on title
  • Find out about back HOA fees or fines
  • Find out if there have been any recent lot splits - and confirm City/County approval
  • Obtain a quote from a local insurer with known history of the property
  • Connect with experts to inspect the property, septic tank, well
  • Connect with utility company to temporarily turn on utilities for inspections--and ensure no outstanding bills for service will require payment

and help investors perform due diligence PRIOR TO OFFER on properties (such as HUD) that will NOT REFUND earnest deposit for investor purchasors--EVEN when they are within an inspection period.

A buyer's agent can be your most powerful defense against an unwise real estate investment.

Don't pull the trigger without one!

Google Me!

 

Deals That Make Sense.

Bullhead City 86442, Fort Mohave 86426, Mohave Valley 86440

SEARCH FOR ARIZONA REAL ESTATE On The Beautiful Colorado River ~~~

www.RealEstateBHC.com

www.CommercialBHC.com

http://facebook.com/NextWaveREI

866-228-2643

Candice A. Donofrio, Owner/Designated Broker

Certified Commercial Sales Specialist

 

ALL WORDS AND IMAGES ARE INTELLECTUAL PROPERTY OF CANDICE A DONOFRIO AND NEXT WAVE REAL ESTATE INVESTMENTS AND MAY NOT BE USED WITHOUT PERMISSION. C.2010-2011

Don't even think about it.

 

 

 

Protected by Copyscape Duplicate Content Tool
 
Post is included in group: BananaTude
Post is included in group: Arizona Real Estate
Post is included in group: I Rock, Therefore I Am!
Post is included in group: Optimizers
Post is included in group: Realtors®

40 Comments on Buying A Foreclosure Without A Buyer's Broker - ARE YOU KIDDING?

20 Most Recent Comments Displayed Show All

SEP
30
2010
291,471 Points 15 Featured Posts

Goes for unsuccessful short sales too. I have had some I could not close becasue of third party liens outside the lenders. Some potential buyers say we will just go to sheriff sale and buy it there. A sheriffs deed doesn't buy you clear title. I would love to see one of our attonrey friends on Active Rain talk about that.
9:46am • #21
320,840 Points 24 Featured Posts Localism Sponsor Called Shot Master

Or, as the case may be 'unbundle of rights', Cheryl. ;)

You bet, Sarah.

Right, Suzanne. The biggest problem is, you won't know what you are not being assured of. If you know and you want to proceed, perfect. Otherwise, how many earnest deposits are you prepared to lose?

Good point, Perrin. You have to know who to contact before you can find out much of anything. Only local and connected representation will accomplish that.

There are great deals for those with the resources and intestinal fortitude to 'play it their way', Barbara. But gotta know good bad ugly first. Thx :)

Absolutely, Michael.

Oh heavens yes, Bruce. You WILL sign an 'unrepresented buyer' disclosure and that is a very bad position to be in with a builder.

"A sheriffs deed doesn't buy you clear title."
Sure doesn't, Joe! Also, we are seeing 4-5 figure sewer assessments 'live' on foreclosures and only sometimes does the seller clear them. They are often passed to the buyer. And in the listing? Assessments: $0 is how it usually reads. Hey, it's a foreclosure. Seller doesn't KNOW anything!
10:02am • #22
1,152,956 Points 86 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Candice, I am often amazed when a buyer will come into one of my listings and feel that they can get a better deal with the listing agent than with their own buyers agent. It only gets worse with a REO. At least here in CT a proeprty cannot be sold,as an REO with any liens against it, so that is a minimum. Great post
10:29am • #23
Called Shot Master

Good Job Candice.  One of the better posts I have seen.

As you have given permission 

http://activerain.com/blogsview/1224626/disclosure-is-not-an-option-even-if-it-s-an-reo

http://activerain.com/blogsview/1261276/disclosure-is-not-an-option-even-for-reos-part-ii

Here's hoping that dry heat makes it your way.
10:36am • #24

Nice post- THe fine print in these addendums is pretty amazing. The buyer's really need an expert to help them UNDERSTAND what they are signing.
10:43am • #25
823,519 Points 155 Featured Posts Localism Sponsor Outside Blog Hit Router Attended Rain Camp Called Shot Master

Excellent information for consumers, whether they're in you're neck of the woods (Airzona) or mine.  I don't re-blog often, but this is one that I thought could benefit folks in Maryland.  Thanks for enabling that feature.
10:47am • #26
320,840 Points 24 Featured Posts Localism Sponsor Called Shot Master

Thank you Ed . . . I know it's different state to state. HOAs love to throw in accruing fees when they find out a property is in escrow . . . many will just eat them but some will try to shove them over onto the buyer. Getting with the HOA is one of the most important things a buyer's broker can do during that due diligence period - because escrow may not get to it before it ends.

Thx Hercel, and thanks for your note. (Hercel wrote some GREAT posts about REO disclosure issues--you should go see them)  :)

Hell, I need to read thru them a few times myself, Mark! :) I'm seeing them posted to listings more often lately, and am grateful for that. So often, buyers read them and run screaming from the room. That's just as well. These deals are great for some but not for all (baby buyers or those on a tight budget)

That is very nice of you, Margaret - and the others who are reposting. I know I am getting a workout from these very labor-intensive transactions. Feels good! Makes you tough!

Can't wait for the CRE market to come back! :) 

11:12am • #27
292,852 Points 3 Featured Posts Outside Blog Attended Rain Camp

This is really well put! Thank you for the information! It's amazing anyone would even consider buying a foreclosure without representation.
12:18pm • #28
445,176 Points 5 Featured Posts Localism Sponsor Outside Blog

Well stated.  Even real estate agents without enough foreclosure knowledge can miss these items.
1:12pm • #29
878,677 Points 75 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

There is no doubt that having both a good buyer's agent and attorney are important when buying a foreclosure! I have written a detailed article about buying a foreclosure home.
4:03pm • #30
207,633 Points 1 Featured Post Outside Blog Hit Router Attended Rain Camp Called Shot Master

Candice - Thanks for pointing out what for some of us is the hidden value of representation.  And most importantly, for making the post public .... with the comments, perhaps some of our consumers will be walking away with a greater appreciation and a better education.
4:18pm • #31

Not sure why anyone would do that. Some folks just think they know everything
4:47pm • #32
320,840 Points 24 Featured Posts Localism Sponsor Called Shot Master

People are funny, Sylvie. There are some who still think they will get a better deal or eliminate some of the commission in favor of a better price. Just ain't gonna happen.

Every time one of us gets slammed with a 'surprise' we learn, huh Brian?

We don't use attorneys in our transactions, Bill. But consulting one is not a bad idea even if they aren't presiding over the escrow. Nice post over there . . .

Amen, Jack. Representation has many layers of value. Computers will not replace us. Not even the great RPR can find out some of the stuff we can. It's just not possible that RPR talked to the guy at the feed store down the street and found out that the guy whose property the well is REALLY on actually didn't have the right to convey it because when he divorced his wife . . . hahahaha . . . this could be my next post . . . what RPR could never know . . .

Me either, Derek. And yet, I am continually surprised . . . :)
7:12pm • #33
1,351,812 Points 42 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

This sounds like sensible advice to me.  There are many things in the list that most buyers wouldn't even consider.
9:10pm • #34
OCT
01
2010
523,427 Points 10 Featured Posts Outside Blog Called Shot Master

Great advice. 

May I echo Bill post #30, Buyers should also retain an Attorney.

Especially with the news stories over the last few days regarding GMAC, Ally, and more than a few Foreclosure Mill Law Firms being accused of acquiring foreclosures through robo-signing and other illegal procedures.
12:46am • #35
462,537 Points 2 Featured Posts Outside Blog

Makes perfect sense to hire someone to work for you at no cost TO you.
6:09pm • #36
OCT
02
2010
320,840 Points 24 Featured Posts Localism Sponsor Called Shot Master

And a lot of agents, Christine. So many potholes and so few escape routes!

That is a great point, Fred - is the property even legally foreclosed!

Pretty much so, Robert. On occasion, a buyer may wish to retain and pay their own agent . . . but the REO banks are usually pretty fair about paying the brokerage fees.
11:06am • #37
OCT
05
2010
1,098,688 Points 51 Featured Posts Outside Blog Called Shot Master

Do I have to spend money for a title search, for a survey? Same kind of short sighted logic if you wing it without the professionals on board to "cruise the facilty looking for slack" and do the "exploratory surgery".
11:43am • #38
320,840 Points 24 Featured Posts Localism Sponsor Called Shot Master

Oh, absolutely, Andy. We just found out yesterday that an 1800 SF house was actually built AROUND a singlewide. Listing office and County records call it a 1991 site built home . . . but permit files at City show a 1969 600 SF trailer with a WHOLE BUNCH of room additions!

Appraisal and title search will kill conventional financing.

I went thru 2 people at City and County before I got the proof. But I knew it was there somewhere.
12:06pm • #39
OCT
06
2010
606,097 Points 9 Featured Posts Localism Sponsor Outside Blog Called Shot Master

HI Candice - this is a great post and offers some very good advice. There are so many items to be considered.
9:32pm • #40

20 Most Recent Comments Displayed Show All

Login or register to leave a comment
 
Gedc1667 Rainmaker_large

Candice A Donofrio 928-201-4BHC (4242) call/text

Fort Mohave, AZ

More about me…

Candice A Donofrio Bullhead City AZ Commercial 928-201-4242

Address: All Of Mohave County, Fort Mohave, AZ, 86427

Office Phone: (866) 228-2643

Cell Phone: (928) 201-4242

Email Me






The Animal Rescue Site
The Breast Cancer Site


I am nerdier than 80% of all people. Are you a nerd? Click here to take the Nerd Test, get nerdy images and jokes, and talk on the nerd forum!



Photobucket

Twitter Updates


    Photobucket

    B.O.U.N.C.E. Radio



    Arizona
    Mortgage Rates     Mortgages, Home Loans, and Mortgage Quotes at Zillow Mortgage Marketplace Get this widget


    Listings

    Links

    Archives

    RSS 2.0 Feed for this blog