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Read This Before You Buy a Foreclosed Property...

By
Real Estate Agent with Tri-Lakes Realtors

There are several things to be aware of when purchasing a foreclosed home from the lender.  You need to be prepared as the process is quite different than purchasing from an individual.

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•1.    There will be no sellers disclosure. Most of the time, the bank/lender has never even seen the home. Therefore, they know nothing about the condition, age of home, past repairs, etc.

•2.    You are purchasing the home "as is." The seller will not make any repairs. Consequently, it is a good idea to have an inspection or thoroughly check the home over if you are experienced in home repair.

•3.    The seller will not accept any offers contingent upon the sale of your home.

•4.    You will need to have been pre-approved by a lender or provide a letter from a financial institution stating that you have adequate funds to purchase the home in order to submit an offer.

•5.    The seller will usually not accommodate a change in the closing date and often you will be charged if you are unable to close on time.

•6.    Don't expect a quick response to your offer. It often takes 2 or 3 business days or more for the seller to answer.

•7.    Sometimes, property sales may have a deed restriction requiring that the property cannot be sold for more than a certain amount in a stated time frame.

•8.    Expect a lot of paperwork. In addition to the regular real estate contract, the seller will probably require their own separate contract be signed.

The purchase of a foreclosed property can intimidating, but an experienced Realtor can help you through the process. Hopefully, reading the items listed above will help to avoid surprises during the transaction.

Tammie Turner, Tri-Lakes Realtors         Visit My Web Site

 

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