Info on buying a foreclosure.

(*Realtors skip on down)

Purchasing a foreclosure home requires the same procedures as purchasing any other home.

The major difference is that you are not dealing directly with a homeowner that has lived in the home and has a emotional connection to the home. In most all cases, a foreclosure home is owed by a Bank or Corporation that has asset managers (employees) working to sell the home for the best price in the shortest amount of time.

The asset manager seeks the advise of a real estate professional to determine the price for the home. They also obtain an appraisal of the home from a licensed appraiser. The combination of the two prices is where they determine the list price for the home with repairs and updates are taken into consideration.

Once you have decided to purchase a foreclosure home, the sales agent will prepare the Sales Agreement and send it along with valid proof of funds or a mortgage pre-approval letter and a copy of your hand money check to the listing agent. In some cases, such as the VA different forms are required, this would be indicated on the MLS printout. Once the paperwork is received by the listing agent, the information is relayed to the asset manager either through fax, email or by phone, depending on the asset managers preference. It can take several days to get an answer back from some asset managers depending on if upper management approval is needed for the price or terms.

After the price and terms are agreed upon, addendums will be sent for buyer's signature. These addendums state that the property is being sold in as-in condition, (as is, where is) and that the property was obtained by the seller by foreclosure or deed in lieu of foreclosure with the seller never having occupied the property. It also states that the buyer has a determined amount of days to make inspection and obtain mortgage approval if necessary. There usually is a clause that states if the buyer goes past the agreed upon closing date, the penalty would be a per diem of somewhere between $50 and $250 dollars for each day the closing is delayed. The penalty would only be in effect if the buyer does not close due to his own fault or negligence.

Please note that the seller's do not turn on utilities for inspections or appraisals. The property is being sold in as in condition with no repairs being done by the sellers prior to closing. Buyers are responsible for any and all occupancy inspections, dye tests or other requirements for closing. Please check with your realtor for what is necessary.

The sellers have usually started title work with a title company of their choosing, in most cases, the buyer has a choice to use the sellers choosen title company and the sellers will pay for the title policy, this saves the buyer quite a bit of money.

Closing must take place in 30 days or less for cash offers and no more than 45 days for financed offers.

*Realtors--------

Va homes require the use of their own forms which you can find on this site, they are legal size forms and must be printed full size on legal paper.

When we get an answer on your offer, we will be either faxing or emailing you. Please check both before calling us for an answer.

Proof of funds means just that, if waiving mortgage contingency, the buyer must provide proof of liquid funds. A bank statment with the buyers name or other printed letter is adequate.

Pre approval letters must state all terms and conditions that match what is on the sales contract.

Thank you very much for showing our properties and working with us to get the property sold!