Buying a Foreclosure Doesn’t Have to Be Difficult or Risky
A client of mine closed on a foreclosure unit this past Friday. It was the smoothest transaction that I’ve ever had. I wish all of my deals were like that one.
Many people believe that buying a foreclosure can be risky. When a bank lists a recently foreclosed property with a traditional real estate agent, this just isn’t true. In most cases, the bank will clear any problems with the title and an inspection period is afforded to the buyer. My client was given 7 days to inspect the property that he had under contract which was more than enough time. We had a property inspector in the unit within two days after having a fully executed contract.
A foreclosure that is purchased on the steps of the county courthouse, however, is just the opposite. In many cases the title can be clouded and the buyer is not allowed to conduct a full inspection.
My client’s appraisal came in 30% higher than what he paid. As a result he didn’t have any problems obtaining financing. We had a 30-day close and during that short time not one issue came up.