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We realize that purchasing foreclosures can be confusing to the average buyer, so we have put together a List of questions that we hope you will find helpful.
What is different about purchasing a foreclosure?
The actual procedure is the same except that you are purchasing the property directly from the lending institution. There are additional addendums which must be signed. One addendum that is typical is the" as is" addendum.
What is an “as is” addendum?
Lending institutions sell these properties in their current condition. You have the right to have inspections on the property, but the owners will not make any repairs to the property. The List prices reflects the condition of the property. After the inspections have been completed, you have the right to either void or proceed with the agreement of sale. You will have a limited amount of time to have the inspections completed and this time frame is on the addendums.
How do I view the properties?
We will provide you with addresses and allow you to dive by the properties. Before you view the properties, you need to be approved by a lender with a written Loan commitment. If you are paying cash, we will need a verification of funds.
How much of a down payment is required?
Down payments can vary depending on the mortgage company and the type of loan that you are getting. All our foreclosures typically require a minimum of $1000 earnest money. You are entitled to receive your earnest money back if the inspections are done on time and you find the property unsatisfactory.
Are there any liens on the property?
Typically No, the foreclosure process clears all liens that were on the property.
Can I finance a foreclosure?
Yes, however not all properties can qualify for a mortgage. Some properties need too many repairs and cash is required to purchase these types of properties. There are some special mortgage products that will lend money for these repairs. Please call our office for details.
What condition are the properties in?
Remember that these hones are being sold in as is” condition, with the List price reflecting the condition. That is why it is important for you to have inspections done so you clearly understand the condition of the property. Most homes will need a minimum of paint, carpeting and decorating. However, some properties will need major repairs and /or replacement of mechanicals.
What are the terms of the offer?
All real estate taxes are prorated as of the date of closing. If the municipality requires a certificate of occupancy or any other certifications, they are the buyer's responsibility. Some municipalities will issue a conditional certificate. In this instance, the buyer will have a certain amount of time to complete repairs called for by the governmental authority Seller requests that buyer closes at Seller’s Title Company. The seller then pays for the title insurance and there are it makes for a much smoother transaction. |
