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Go with "RO" for ALL your Real Estate Needs !
Guide to Purchasing a Foreclosure HomeForeclosure homes can be a great buy. However, they can also come with some risks not associated with standard home sales. Before you consider purchasing a foreclosed home there are some things you should be aware of. * I highly recommend we also talk about foreclosures and short sales. These properties have many documents and procedures different and there is additional information you should be aware of . There are almost always some questions that come up regarding the dealings with bank repos etc. Basic things to know about foreclosed ( bank repossessed) homes. These properties are sold in AS IS condition with NO warranties implied or expressed. The bank will also be requiring that a buyer sign multiple pages of disclosures and addendums along with the standard purchase contracts. These disclosures and addendums concern the AS IS condition, buyers rights in regards to home inspections, property condition disclosures, insurance claims history reports, repairs ( most often the bank will NOT do any repairs) etc. The bank’s addendums will outline terms & conditions about any changes the bank is making to the "standard" real estate contract regarding the entire closing process and timeframe. In a standard owner situation you would be provided a copy of a sellers disclosure of condition of the house, describing past problems, repairs etc. and an insurance claims history report. In a foreclosed property -- NO such forms will be provided. In a standard seller owner situation you could ask for repairs should some problems be discovered in your home inspections -- Bank Owned properties will most likely NOT be willing to make repairs . You will be signing AS IS addendums along with the purchase offer contract. Making an offer on a foreclosed property will require certain things. You MUST provide along with your written offer one of these 2 items : 1. Preapproval letter from qualified lender if you are getting a loan to purchase a Foreclosed home -- NO contract can be submitted without this letter of approval. 2. Proof of funds available if you are going to be paying cash MUST be provided along with any written offer to purchase a bank owned property. IE: letter on bank letterhead stating you have funds currently available, or bank statements (recent) showing enough money to meet the purchase price and expected buyer closing cost Typically you should expect most activities associated with dealing on a bank repo to take longer. The bank will more than likely take several days ( weekends don't count ) to respond to an offer. Until the bank has responded with an acceptance of your offer --- it is STILL on the market & can have additional offers come in for the bank to consider along with your offer. The bank has a couple of options available for dealing with multiple offer situations: A-- They can pick the best one to work with and disregard the other offers. B-- They can choose to negotiate with just the best offer & reject the others. C-- Not respond to the others until they have negotiated either with what they think is the best offer. D-- They can notify verbally or in written form, ALL buyers that they have multiple offers giving each buyer one last chance to submit their best offer for the bank to consider. Usually they will notify the chosen offer verbally. Then they will send over their "addendums" outlining their terms and conditions. The buyer must then review those looking for terms/condition changes that may not be acceptable to the buyer. If the buyer is okay with these, they'll sign the bank’s addendums/disclosures & they’ll be sent back to the bank. Once the bank receives those signed addendums back the bank will then sign the purchase contract originally submitted to them from the buyer and escrow will be opened. It's important to review these bank addendums, they can sometimes substantially affect the buyers rights, the earnest money deposit, make changes to the timeframes and multiple other possibilities. So it's very important to read through these and make sure you understand the ramifications outlined in their addendums. EACH and every bank owned property will have it's own and different addendums as there are many different banks who own foreclosed properties. Property Conditions of bank owned properties. Each property will be different. Some are in good condition, some have minor damage or problems and some may have major damage or have had appliances, parts etc removed by the previous owner. Sometimes utilities are turned on and available for inspections. Sometimes they will not have utilities on and the buyer will have to absorb the cost of utility turn ons in order to perform inspections. Inspections are performed after the bank has accepted your offer.
What you think they’re thinking may not be correct Many people assume that a bank is 'desperate' to sell. Keep in mind, the bank doesn't have an emotional reaction to any property. It's a paid employee or dept of employees that are in charge of these homes. And given the current market , you’d expect they would think like you would think. Often that’s wrong. Yes, often they will negotiate on the asking price. But if it's just come on the market, they will be pretty firm in their price until some time sitting on the market tells them otherwise. The bank has done appraisals & market evaluations to come up with the asking price you see. And that price is already taking into consideration the condition of the house. It’s priced accordingly if it’s in need of obvious repairs or is a “fixer upper”. Often these banks will have dozens , maybe hundreds of homes throughout the I hope this helpful for you. Buying a foreclosure can certainly be a good deal but you must be prepared to deal with the differences in buying a foreclosure vs. standard seller. I can't emphasize enough that it's important to talk with me so that we can clear up any questions. We want to make sure you can get the best deal at the best price and have a clean experience with no unhappy surprises.
CALL OR EMAIL ME so we can talk about this whole process and procedures in today's unusual market. It’s a great time to buy, but always buy wisely and make Informed decisions. Call direct to Ro at 928-486-4835 My email address and contact information is also at top of screen Information is always FREE and with NO obligation to you What is a Short Sale - and what happens in purchasing a short sale property
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