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Does your client understand the difference between a foreclosure and a resale ?

By
Real Estate Agent with The FLorida Real Estate Store Inc.

Putting aside the obvious of who owns the property does your client understand the material differences in many cases between a foreclosure and a resale by owner ?

 

For the most part I have had to sadly re educate my clients about this.

 

Britannica Precise Encyclopedia definition of foreclosure

Legal proceeding by which a borrower's rights to a mortgaged property may be extinguished if the borrower fails to live up to the obligations agreed to in the loan contract. The lender may then declare the entire debt due and owing and may seek to satisfy it by foreclosing. Foreclosure is commonly by a court-decreed sale of the property to the highest bidder, who is often the lender.


Read more: http://www.answers.com/topic/foreclosure#ixzz1Enq63Alf

 

The problem is many people don't realize that many of these are bargained priced for a reason. Your not going to get the taj mahal for pennies on the dollar. You have to be realistic about what your expecting. If you are looking for a bargain yes in many cases you will find that with a foreclosure but you can't expect to be able to renegotiate the offer on an AS IS contract after the fact because you dont' like the color of the cabinets or the fridge is missing. If the tile is cracked or driveway is not level does not mean you can get more of a discount than before. In some cases they are willing to listen but in most cases it is priced accordingly knowing the defects already. The inspection is what provides you the ability to get out of the contract within the allotted time if you dont' feel the deal is there. If the repairs out weighs the gain of purchase.

 

Please please please you can't expect to get a 500k house for 75K. It's just not realistic !

Halina Kraszewski
RE/MAX Suburban, Mount Prospect, Cook County, IL - Mount Prospect, IL
Polish Speaking Real Estate Broker Agent

Joanne : Good points.....

Feb 23, 2011 04:42 AM