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Massachusetts Real Estate Attorney - Buying Real Estate 2.0

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Services for Real Estate Pros with Peskin, Courchesne and Allen, P.C.

As much as the real estate game has changed for Sellers (as I had explored in my last post), the game has certainly changed for Buyers as well.  The question is with some types of property, do they, or rather should they want to play?

 

Over the last year I have had my share of horror-show -closings with short sales that were never approved and REO properties that were not properly inspected prior to closing leaving the Buyer with expensive, unexpected repairs. In Buying property 2.0, the basic principles of buying property are the same, but the risks have changed.  With short sales and bank owned properties Buyers have three  major risks:

1 Will the property close in time for Buyer's use, or within Buyer's rate lock period?

2. Will there be expenses that Buyer will lose if the property does not close due to Seller or Seller's Lender?

3. Must Buyer forego some due dilligence in order to make the deal happen and at what cost?

 

These risks may be obvious, but I have a lot of Realtors dragging first time home buyers through these types of transactions.  Often, said Realtors do not fully relate all of these risks as same may apply and they end up calling my office a thousand times as the deadlines pass, asking me why we are not closing on time and "so what happens now?"

 

I think if we properly prepare our clients with cautionary advice and give them options, we can succeed with these 2.0 Buyers - they just need to be prepared to wait and they must be willing to gamble a little if they want to purchase a discounted bank owned or short sale property!

 

Disclaimer In accordance with rules established by the Supreme Judicial Court of Massachusetts, this web site / blog must be labeled "advertising." It is designed to provide general information for clients, prospective clients and friends of the firm and should not be construed as legal advice, or legal opinion on any specific facts or circumstances. This web site / blog is designed for general information only. The information presented at this site / blog should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.

 

 

 

Dennis Swartz
Full Circle Property Management - Columbus, OH
MBA, GRI...experience counts!

Good advice...the buyer can save a lot of money but they need to know the risks!

May 18, 2008 01:31 PM
Barbara S. Duncan
RE/MAX Advantage - Searcy, AR
GRI, e-PRO, Executive Broker, Searcy AR

Blame the attorneys in some cases.  In Arkansas our contract used to say that the loan would close within 7 days of _____________date.  That gave us time to work things out.  Now it says the loan will close ______________date, no ifs, ands, buts.  One day or the contract is null and void without a written extension.  I hated that change.

May 18, 2008 01:44 PM
Gary Woltal
Keller Williams Realty - Flower Mound, TX
Assoc. Broker Realtor SFR Dallas Ft. Worth

Nyles, not even counting condition of the property, the paperwork, and often lack of inspections RISK is the biggie to talk about to buyers in purchasing this class of property. Thanks for the reminder to all us agents.

May 18, 2008 03:18 PM
Nyles Courchesne
Peskin, Courchesne and Allen, P.C. - Springfield, MA
Massachusetts Real Estate Attorney

Dennis - Thanks

Barbara - I am not worried about my Buyer not being able to close in time on an REO deal because as I have mentioned in other posts, I have NEVER had a Bank Owned deal close on time and every time it was due to the Seller missing the date because the foreclosure paperwork was not on record, or just wrong. . .

May 18, 2008 03:49 PM
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Nyles, Giving your clients the information they need to purchase these homes and making them aware of things which is what you're doing is beneficial.  When I purchase another home I'm going to need a top notch realtor who keeps me informed.  Great post.

May 19, 2008 03:46 PM
Robert L. Brown
www.mrbrownsellsgr.com - Grand Rapids, MI
Grand Rapids Real Estate Bellabay Realty, West Mic

Good points. REO's can be such a hassle. I just closed 1 that took 2 months. Mostly held up on the seller's side.

May 20, 2008 04:51 AM