When it comes to foreclosures in Alabama, do me a favor...
It's unfortunate that so many people are going through the foreclosure process but to those of us in the real estate industry, it does spell one thing - J-O-B S-E-C-U-R-I-T-Y. Let's face it, these houses need to be sold and, in my case, financed. Sure, we all cringe a little when we land one of these gems but they really aren't THAT bad...or at least I keep trying to convince myself that! Foreclosures seem to take twice and sometimes three times as long to close then your typical purchase so I am going to keep this soapbox presentation extremely short. You can thank me later.
I run into a three common hurdles with foreclosures that make for a not-so-fun experience for all parties involved. If we, the Realtor and the lender, can cover these three bases up front, it will make for smooth sailing on the high foreclosure seas.
- Be sure the utilities are on when the appraiser arrives! This will avoid not only frustration but an added fee for a final inspection
- Remind your buyer that the property taxes may very well be double! I'm going to tell them when they are sitting in my office anyway so this may as well be addressed right up front.
- Don't forget the surety bond! This is my personal favorite. Pretty simple math: loan amount > foreclosure amount = surety bond required. I am often the bearer of this wonderful news and trust me when I say borrowers DO NOT like to hear this the week before closing. Since Alabama has a Right of Redemption period of 12 months (yes, I said 12 months!) we run into the issue of requiring a surety bond more times than not.
So if you are selling a foreclosure in Montgomery, AL, do me a favor and remember those three little items. I promise it will make a big difference on even the smallest of transactions.
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