Tuesday, March 24, 2009
Buying a Foreclosure
If you're thinking of buying a foreclosure presently owned by the Bank, you're not alone. About 40-50% of all sales in the Nation are distressed properties. And, there's a lot of foreclosure opportunities on the horizon. Here are the ten steps to take, if you plan to take advantage of this opportunity:
1. Get pre-approved with a reputable well-know lender in your city.
2. Find an agent that has sold at least 10 foreclosures in the past year.
3. Line up an inspector that can do an inspection quickly. You won't be able to ratify a contract on a foreclosure until your inspection is complete - so you'll need to have an inspector ready to act quick, and an agent who knows how to "tie down" the property while you do the inspection.
4. If the property has been listed in the past 21 days, plan to offer full price (they may pay your closing costs at full price).
5. If the property is a new listing, prepare to act in the first 24 hours. Most of our bank-owned listings sell in the first week.
6. Expect that you'll have some work to do before you can move in. Most foreclosures need paint and carpet; some even more.
7. If you are paying cash, this can sometimes help you, but make sure you have a proof of funds document to present with your offer.
8. You'll be responsible for doing your own CL-100/Termite Letter in most bank-deals and it's highly recommended.
9. Prepare for closing to take 30-45 days, as the bank has to get a final deed from the Magistrate to provide a clear title to you.
10. Expect a wait and/or a competitive situation when you're bidding. These homes are typically priced below market, so there are a lot of buyers looking at Foreclosures.
1. Get pre-approved with a reputable well-know lender in your city.
2. Find an agent that has sold at least 10 foreclosures in the past year.
3. Line up an inspector that can do an inspection quickly. You won't be able to ratify a contract on a foreclosure until your inspection is complete - so you'll need to have an inspector ready to act quick, and an agent who knows how to "tie down" the property while you do the inspection.
4. If the property has been listed in the past 21 days, plan to offer full price (they may pay your closing costs at full price).
5. If the property is a new listing, prepare to act in the first 24 hours. Most of our bank-owned listings sell in the first week.
6. Expect that you'll have some work to do before you can move in. Most foreclosures need paint and carpet; some even more.
7. If you are paying cash, this can sometimes help you, but make sure you have a proof of funds document to present with your offer.
8. You'll be responsible for doing your own CL-100/Termite Letter in most bank-deals and it's highly recommended.
9. Prepare for closing to take 30-45 days, as the bank has to get a final deed from the Magistrate to provide a clear title to you.
10. Expect a wait and/or a competitive situation when you're bidding. These homes are typically priced below market, so there are a lot of buyers looking at Foreclosures.
Labels: Foreclosures in Mount Pleasant and Charleston, SC
