how do I purchase a foreclosed home?
There are all different names for distressed properties…and they all have different time-lines, contacts, and processes that the home needs to go through before it can settle. For example “pre-foreclosure/shortsale”, “shortsale” is a ridiculous title….it is in fact a long drawn out process that takes weeks to complete, you’ll need an excellent agent and lots of time to make these purchases. REO’s on the other hand can be quicker to close if things are handled properly, in about 30 days. There is much more to all of these transactions and I suggest you contact a real estate agent. I have a FREE list of local and National foreclosed homes available on my website http://www.DennisStrange.
Get yourself a real estate agent, find the home, and go buy it. The one thing you have to be careful about with a foreclosure, though, is that the bank does not have to submit a transfer disclosure statement (TDS). In a non-foreclosure sale, the seller has to fill out and sign the TDS, which lists all known conditions about the property to the best of the seller’s knowledge. This would include and problems with the structure or the land, the operating condition of all additional property included with the sale (appliances, furnace, water heater, etc.), and even something like the seller has knowledge that a neighbor plans to build up a second story that will block your view. If the buyer of a non-foreclosure property finds some discrepancy that is not disclosed on the TDS up to 2 years after the sale closes (that’s the statute of limitations in California and may vary by state), the buyer can sue the seller and the seller’s agent for any damages that are due to the non-disclosure.
No catch. Most foreclosed homes are listed tight deadline for purchasing, this may not be your best bet. Delays on the closing date are not uncommon. I would not waste my time going through the ‘foreclosure lists’ that are in abundance on the Internet. Most of those lists include both people who are in pre-foreclosure who have no interest in selling to you, or homes that have sold long ago. I would go through a real estate agent; search your local MLS; and look for the Bank-owned properties that are already listed there. That is the fastest and easiest way. Anything more than that, it may as well be through a real estate agent careful about a few things sold ‘As-Is’. No repairs. Make sure you do a while to respond. If you are under a: 1) Most foreclosed homes will be very thorough inspection! 2) Many banks may take a.
