Re: Buying Foreclosed Homes
My clients are closing on a bank-owned property in about a week. Is this the same as a foreclosure or does there have to be an auction for it to constitute a foreclosure? I understand that in an auction situation you could be assuming all the liens and unpaid back taxes so you'd better do your homework before you bid. With a bank-owned property, on the other hand, the biggest risk is probably not knowing what you're getting into unless you have a very thorough inspection. Also, the properties are often winterized and it can be a real bear to get approvals in time to get the property de-winterized so that all the utilities can be turned back on for the inspection. Further complicating matters is when something is not operating correctly (like the furnace, which is the case with the deal I'm currently working on) because then you've got to get someone to diagnose it, quote a repair and then get the bank to approve the repair - all before you've ever finished your inspection! And good luck getting an extension from a bank if you need one. Your best bet is to work with a very aggressive Realtor who is hungry for your business and will do whatever it takes to get the job done.
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