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Buying a foreclosure can be stressful

Many people avoid short-sales because they are frustrating.  This means that there is somewhat of a feeding frenzy around bank-owned properties.  Its important to know that these can be difficult transactions as well and make sure the buyer is prepared to handle it.  

Here are some of the things that are important to know in a foreclosure transaction.

  1. Try to see the property as soon as it gets on the market because the more desirable properties may end up with multiple offers.
  2. Some banks will not review the offers right away but will wait for the home to be on the market for a few days.
  3. Make your highest and best offer because many banks will not accept escalation clauses.
  4. Once the offer is accepted banks do not like to make changes and will make it very difficult (trust me, I learned this the hard way).
  5. Homes are sold "As-Is".  Banks will rarely make repairs.
  6. Many banks will make the buyers pay to have the home de-winterized for the inspection.
  7. Make sure that the closing date you agree to is realistic because many banks will charge a per diem charge for every day after the originally agreed upon closing date.
  8. Many banks will make it extremely difficult for the buyer to choose their own title company.

Foreclosures can be great deals.  However, you are not dealing with individual sellers but instead with a corporation that can make it also stressful and frustrating. 

Pack your patience and it can be incredibly worth-while in the end.

 

 

If you or someone you know would like information about buying, selling, or renting a home in Prince George's, Montgomery,  Charles, Calvert, Anne Arundel, Howard, and/or Baltimore Counties please contact Dr. Stacey-Ann Baugh of Century 21 New Millennium.

 

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Donations made to charity with every successful closing!


Dr. Stacey-Ann Baugh

Century 21 New Millennium

www.LiveinPGCounty.com

staceyannbaugh@gmail.com

240-481-3565 (C)

202-546-0055 (O)

 

FINALLY!  A DOCTOR WHO MAKES HOUSE-CALLS!

 

Information deemed reliable but not guaranteed! 

 

 

 

Comment balloon 9 commentsDr. Stacey-Ann Baugh • March 27 2009 07:11AM

Comments

Also, try to find out exactly  what the bank wants when you submitt your package  along with the offer.

Posted by John Combs (Alan Deblat Real Estate Corp.) over 9 years ago

I find foreclosures to be very desirable when compared to short sales.

 

Posted by Lenn Harley, Real Estate Broker - Virginia & Maryland (Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate) over 9 years ago

I agree, I would rather work with foreclosures than short sales any day.

Posted by Dr. Stacey-Ann Baugh, A doctor who makes house calls. (Century 21 New Millennium) over 9 years ago

Stacey Ann, The foreclosure process seems to be more consistent than short sales. Give me a foreclosure any time over a SS. Rich

Posted by Richard Iarossi, Crofton MD Real Estate, Annapolis MD Real Estate (Coldwell Banker Residential Brokerage) over 9 years ago

Hi Stacey Ann, the fact that foreclosures are easier than short sales aptly illustrates why we are still caught in the giant foreclosure machine. Will it ever end??!!!  Great post, with good information! Thanks Stacey-Ann!

Posted by Mary Douglas, REALTOR, Red Feather Lakes, Colorado (United Country Ponderosa Realty, Red Feather Lakes, Colorado) over 9 years ago

I think communicating realistic information about the transaction is very important.  Great post!

Posted by Rebecca Anne Cole (PNC Mortgage ) over 9 years ago

Rich - I agree

Mary - I'm hoping that it will be coming to an end soon.

Rebecca - Thanks

Posted by Dr. Stacey-Ann Baugh, A doctor who makes house calls. (Century 21 New Millennium) over 9 years ago

Stacey-Ann - This is great advice!  It's good to inform the buyers as to what they should expect.  :)

Posted by Debi Ernst, GRI, e-PRO, Broker/Sales Associate (St. Charles County, Missouri - Prudential Alliance Realtors) over 9 years ago

Beware of that false sense of security. They all seem rosy till the last few days till settlement. I have 3 REO's stacked up waiting due to title issues!

Posted by Ellie McIntire, Luxury service in Howard County & Catonsville (Ellicott City Clarksville Howard County Maryland Real Estate) over 9 years ago

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