Foreclosures

By
Real Estate Agent with RE/MAX Cross Country

Buying a Foreclosure

Depending on who the seller is or what bank you are buying from, the process will be a little different every time.  It is important to know the seller's specific addendums to the contract very early into the transaction.  Every Bank is different on what needs to be done before, during and after the transaction closes. 

Some examples of what to look for will include making sure you have the seller's addendums and offer instructions in hand Before writing the offer.   During the transaction some banks will allow an option period to terminate and others will not, however, most still have the opportunity for the buyer to inspect built in to their specific addendum.  Another point to know will be who will be responsible for turning on the utilities for inspection.  One of the most important clauses in the contract will be in the closing paragraph.  Make sure your lender knows that there might me up to $100 per diem paid to the seller for not closing on time.  Another will be to identify who is paying the SELLER side closing costs.  Some Bank Contracts actually have the buyer paying for all the seller side closing costs.  Last you might be responsible for paying for the property to be re-keyed after the sale.

There are many other clues to look out for that will cause road bumps and/or stress during the transaction if you are not prepared.  Take the time to find out what is required of you or your buyer.  Everyone will be happier.

Comments (1)

Donna Harris
Donna Homes, powered by JPAR - TexasRealEstateMediationServices.com - Austin, TX
Realtor,Mediator,Ombudsman,Property Tax Arbitrator

Great explanation, Ben.  If agents could educate themselves a little more, these transactions could go a little smoother.

Oct 07, 2009 09:23 AM