Things You Should Know Before Buying A Foreclosure Property

THINGS YOU SHOULD KNOW ABOUT BANK OWNED PROPERTIES

The only information regarding the property is represented in MLS. There will be no disclosures. The premises are being sold as it and in its condition at the time of Buyers first view and without representation or warranty of any kind. There is no history on the property, no seller’s description, no operating expenses, and no repairs will be made to the property.

STATE REQUIRED INSPECTIONS Title V/ Septic Inspections: Although most banks will work with buyers to complete a septic inspection, it should not be assumed and if it fails do not assume they will correct any failures with the septic system. Smoke & Co Certificates : Always assume this responsibility is yours, however this can be negotiable.

SELLER ADDENDUM’S: Some banks require seller addendum’s to be present at the time of the offer. These addendums are used nationally, no changes can be made.

PURCHASE AND SALES AGREEMENT: Once the offer has been verbally accepted, banks anticipate the purchase and sale agreement to be signed within 72hrs. Until all contracts are signed the property will continue to be marketed and new offers will be presented to the seller.

PER DIEM: Some banks my impose a per diem charge if the property is not closed in time. This charge can be any where from $50 to several hundred dollars depending upon the property. If the closing is delayed due to the seller than this charge would not apply.

Avoiding Foreclosure

There are many ways to lose a home but signing away ownership in a manner that destroys credit, embarrasses the family and strips an owner of dignity is one of the hardest. For owners who can no longer afford to keep mortgage payments current, there are alternatives to bankruptcy or foreclosure proceedings. One of those options is called a "short sale." When lenders agree to do a short sale in real estate, it means the lender is accepting less than the total amount due. A short sale typically is executed to prevent a home foreclosure. Often a bank will choose to allow a short sale if they believe that it will result in a smaller financial loss than foreclosing. For the home owner, the advantages include avoidance of having a foreclosure on their credit history. Additionally, a short sale is typically faster and less expensive than a foreclosure .Foreclosure is expensive for a mortgage lender. Mortgage lenders are not in the business of foreclosing on houses. Banks and lenders are in business of making loans. They don’t want the house back. This is a business decision for the lender. Which means it has to make rational, logical sense.

If you think a short sale maybe right for you, call now to find out how you can save your credit or visit my website at: www.RealtyKim.com