Foreclosures

Buying a foreclosure is very different from buying from an individual seller.

• You are buying from a corporation or the US government. 

• Your offering price will need to be close to the listed price to expect acceptance.

• Some people will be excluded from bidding on foreclosure properties.

• Some buyers may be given preference over other buyers.

• A foreclosure will likely NOT qualify for an FHA, VA or RD Loan.  Cash purchase or a conventional loan works best.

• The seller will require a proof of funds letter or a pre-approval letter to be submitted with the offer.

• Usually, the seller will make no repairs to the structure. It will be purchased “As-is”.

• If utilities are turned off, you will have to arrange for utilities to be turned on at your cost and pay to have the property re-winterized afterward, if you choose to do an inspection of the dwelling.

• Seller will usually not provide any information or very limited information about the property or its history.

• You will most likely be given a Special Warranty Deed not a General Warranty Deed at closing.

• You must use a REALTOR or licensed real estate agent to submit an offer.

• The seller will likely refuse to provide a home warranty or survey.  You may request these at your expense.  

• The seller may offer limited assistance in paying the buyer’s closing cost.  They may not pay any of the buyer’s closing costs.

• Owner/occupants are given preference by some sellers of foreclosures.

• Seller may impose unusual or special conditions on the transaction.