With the sub-prime melt down there have been tons of foreclosures in Cabotand Jacksonville Arkansas. I get calls from people all of the time interested in them. Many people do not know the process and how foreclosures differ from a normal real estate transaction. There are only a few differences from the ones that I have dealt with and here they are.
Paper work, Paper work
Once an offer is accepted the bank asks for the buyer to sign multiple documents called addendum's. These basically cover the banks tail, saying that they do not have any knowledge of the condition of the home and the buyer is aware the purchase is considered "as is". Way more paper work to sign than a regular contract.
Won't fix it even if it is broke
You are purchasing the property "as is", normally you do not get a repair allowance. I have done a couple where repairs were included in a total amount the buyer would get at closing. In a normal Cabot real estate transaction the buyers and sellers agree to a $500 repair limit. This is saying the sellers will pay up-to $500 fro the buyers to repair anything wrong with the home.
Time is on their side
When a property is bank owned, the bank does not get in a hurry. When a buyer submits the initial offer they are asked to write the expiration for several days from when it is wrote. In a normal contract the expiration is about 24 to 48 hours. During that week the bank can receive another offer and then tell all parties to resubmit their best offer.
Once everything is done with the addendum's and the inspection do not expect to close in less than three weeks or more realistically a month or longer. Banks have a lot of things going and a $100,000 is not their biggest priority.
These are not the only differences, but these are the major ones that I have seen buyers notice the most. If you have any questions, visit my website and send me an email. I will help you anyway I can.
Good Day
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