I had three foreclosure closings this week. All three of them involved pain. I represented the buyers in all three cases. Here are some things to look out for.
1 If you are doing a USDA loan allow yourself AT LEAST 45 days from the binding agreement date to the closing date. USDA is still catching up with their funding back log. And unlike normal sellers getting banks to extend is a problem which defies reason
2 Understand that 90 percent of asset managers do not care about your buyer. So try to close on time. And please do not extend into a date where a manager might miss a quarterly or monthly bonus
3 Make sure your buyers understand NEVER to cancel their lease. Even if it costs them an extra months rent, these closing can really be pushed by the Seller. Many times this is due to last minute title problems
4 If you can in your State insist that the buyer have their own attorney. Just look at what is going on with Allied Bank and GMAC.
5 remember for VA, USDA, and FHA if the house is on well water but there is county water runnung down the road you are probably going to have to hook up to it. Who pays and how long this takes must be taken into consideration when setting a closing date and as part of the offer
6 Keep your eye on the prize. The prize is your buyers getting a home that maybe they could not afford under different market conditions.
In the end all three of my buyers were Happy. One even gave ME a bottle. I gave her a bottle so we both laughed. I am finally going to sleep well tonight.
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