Why a forclosure may NOT be for you...

"Skip, we have decided to buy a house and we want to get the best deal, so should we buy a foreclosure?"

Yes they should be considered...just a couple of things to note.  Foreclosures typically are sold as is where is.  This means you need to keep in mind what type of financing you are trying to use to purchase the property with.  Quite a few of your lenders are going to expect the property you are purchasing to be move-in ready. Does the home have flooring? i.e. carpet, tile, etc., a stove, and lighting fixtures.  Has the exterior AC unit been stolen?  Are there any broken windows?

We can ask the lender to provide the missing items and to get the repairs done before closing.  However, I have found in the past it is a better plan to get a loan type that will allow you to close on the property with all it defects and then get the repairs done after you close. Typically the repair costs are rolled into the price of the new loan.

If you are under a time crunch and need a short close time, a foreclosure may not suit your needs because many are now typically taking a minimum of 45 days to close.  If you run into a issue it may take even longer.  We are not dealing with time frames of short sales here, but they have a history of taking much longer.  If you have the time and an experienced agent, I would recommend foreclosures.   

 Grace & Peace

Grace and Peace...

 

Skip Geiser

(850) 221-6442

http://www.skipgeiser.com/

SkipGeiser@live.com

The Geiser Team with Main Street Properties



Short Sale...Forclosure...REO...Bank Owned

Where do we start?

Short Sale/Pre-Foreclosure - A home owner who is selling their house for less than what they owe the lender.

Foreclosure - Lender is taking steps to take full possession of the house, usually because of lack of payment.

REO/Bank Owned - The lender has taken possession of the home and is in the process of selling it to get it off their books.



The long and the short of it is if you are trying to buy or sell a distressed property it will require time & patience. Some of the pitfalls you may find in the purchase of distressed properties are a lack of disclosures and important information about the house. The lender is going to tell you it does not know anything about the house and will not be held liable for any problems the house may have.



On the selling side there is a mountain of paper work the lender is going to require you to submit for a short sale/pre-foreclosure. When you are going through this difficult time don't be afraid to ask for help, find someone who is knowledgeable in the short sale process that can help you avoid potential problems.



Live Joyfully!