Westport, MA Mobile: (774) 930-8181 Email Karen Ann Martin

How to buy a Foreclosure Home


 


      Buying a foreclosure, short sale or bank owned property can be a confusing process. There is extra paperwork required, time limits to meet & more risk involved.  It is wise to use a buyers agent in a foreclosure home sale.  As your agent, I can alert you to these risks & advise you so your best interests are served and you are protected. I have sold many foreclosures so I can safely guide you through the process.......click here For a free list of foreclosures for sale in MA & RI  

Best to drive by the property - the picture you see on the MLS may not be what the home currently looks like. If you like the home & neighborhood I can arrange for us to see the inside. Most of the foreclosures do not have electricity so you will want to be prepared with a flashlight.

If you want to make an offer on the home, You will need a $1,000 deposit (refundable if not accepted )a pre-approval from a local bank Or proof of funds if paying cash. There are no exceptions the bank will reject your offer if all the paperwork is not submitted correctly. I will submit all needed documents to give you the best chance at getting your offer accepted. I once submitted an offer on a foreclosure that was accepted, the banks agent told me my buyers offer was not the highest offer but it was the only offer that was submitted completely & correctly so the bank agreed to take it. I can advise you when making the offer, to give you the best chance at being accepted & through out the negotiations.  

In order to get a mortgage the home must be live able- have heat, sinks, toilets & kitchen. ( Don't laugh some of these foreclosures have busted pipes from freezing or no pipes from being vandalized ) I will make sure the homes are live able before we even view them. This said I have also seen foreclosures in good condition that are very good buys.

The bank (seller) may be slow in responding. The bank gives you tight deadlines to get all the paperwork in. You are a number to them & they are over-whelmed with foreclosures & cannot get the paperwork done in a timely manner. The lender the does not allow changes to the contract.(however they may & quite often do ask for an extension) If you ask for an extension they charge you per day (generally $100 per day for not closing on time. It is advisable to have an attorney review the purchase & sale documents. I suggest ample time when choosing dates to protect you.

Generally, the bank (seller) will not do repairs. The homes are sold "as is " so I strongly advise a thorough home inspection to avoid hidden costs.  I can suggest a good inspector, and arrange & attend the inspection with you. Because the home is owned by the bank there is generally no information available other then what you can see & what you can get from the records at the town hall.

I may be able to obtain more information if the home was previously on the market.

There may be delays beyond your control, many of the homes have title issues & liens that must be paid before you take title. It is important to be prepared for a delay in obtaining the home. You may not close on the date stated in the purchase & sale agreement.

So in all is it worth it to buy a home in foreclosure? Yes.

 You could find a home in good condition at an exceptional price. If you  have questions about buying a foreclosure home in the Fall River Mass area, call me at (774) 930-8181- my real estate services do not cost you extra. Or  Contact Karen 

 Karen Ann Martin Realtor Re/Max Right Choice Real Estate Fall River Massachusetts www.KarenMartinHomes.com