Foreclosure in 11733>Question Details

Lucylaw, Home Buyer in 11590

Our offer was accepted on a REO property, now what? What should the next steps be?

Asked by Lucylaw, 11590 Sat May 23, 2009

Help the community by answering this question:


Meredith C Kurz LSA CBR EPRO’s answer
According to New York State Foreclosure Law, "In New York, foreclosure sales are made by public auction, usually at the county courthouse. The property is sold to the highest bidder and anyone, including the lender, may bid. The winning bidder typically has to pay 10 percent of the final bid at the sale and the remaining balance within 30 days. When the full amount is paid, the winning bidder takes ownership of the property. Borrowers have no right of redemption after the sale."

Also, there are up and coming regulations on reducing the turn around time for the transactions. I am only hoping that you are not dealing with Bank Of Amerca. Check the web for the specific bank with which you are dealing with, as this greatly determines the experience you will be going through.

The link below is for an animated, humorous version of how the REO procedure works - it may not help ... but it may put a smile on the face of a complicated arduous process. In the end, if you succeed - you will save 10's or even 100's of thousands of dollars - so look at it as earning a salary for a job. Good Luck!
0 votes Thank Flag Link Wed Dec 16, 2009
This is all great advice. A Real Estate Attorney will guide you through the minefield of foreclosure. As others have said it is best to have a knowledgeable attorney, however you must also be diligent and be proactive. Your goal is to close on this property and being proactive is in your best interest. As an Attorney in New York City I know how important it is to have a client who is active in the process and I welcome hand holding when it comes to first time home buyers who know little of the process.

KB Collins
Attorney / Broker
New York City
0 votes Thank Flag Link Tue May 26, 2009
Get your lender everything they need to get you closing ;)

Will Addo
Renovation Specialist
Wells Fargo
0 votes Thank Flag Link Tue May 26, 2009
It is imperitive that you not only have the acceptance in order but that you work with a Real estate attorney experienced in forclosures. What are the terms the offer was accepted at? How many days are you given to obtain financing? A 203 K streamline works best on foreclosures that need work. It's a fast and easier way to obtain rehab financing. As long as the repairs do not exceed $35,000, the lender will include this amount in your mortgage to take care of the repairs. For further information please contact me at 631-547-5151 X243 to see if you and the property qualify for this type of loan.
0 votes Thank Flag Link Tue May 26, 2009
Just because your Mom's Real Estate transactions weren't foreclosures, doesn't mean that attorney hasn't closed a foreclosure with another client. Ask the attorney that you have the relationship with about his foreclosure experience. Since your Mom has used him repeatedly, it would seem he does a good job. Attorneys depend on referrals for their business, and since your relationship is from your Mom's referral, you know "he's got your back". The Real Estate attorney's job is to protect you and be your advocate in the purchase of the home. Since you don't have your own Realtor, you really need to have someone to rely on. That is why everyone is wishing you luck!

In most areas of the country, attorneys are not used for home purchases. Each party has their own Realtor. That is not the case here on Long Island and downstate New York. Some of the advice you have received, although well-meaning, is from out-of-state agents.

The loan you need is an FHA 203k loan (for home improvements). When you start inquiring about mortgages, you will need to ask the lender if they offer that. You might want to try Sandra Cutrone of Preferred Empire. Her office # is (631) 547-5151 x 243, or her cell is (631 383-1846.

Carol Bromm, SRES, CBR
Associate Broker
Prudential Douglas Elliman- Babylon
631 422-8269
0 votes Thank Flag Link Sun May 24, 2009
The agent needs to guide you, and a good attorney who specializes in foreclosures will be worth your money and you need one right away.

0 votes Thank Flag Link Sat May 23, 2009
Sometimes it can take the a while to get the actual paperwork to you from the bank. Depends on the workload they have. Call the listing and ask them your questions. Ask the agent how they work and if they are going to help you though this transaction. If you are NOT comfortable with their answers hire an attorney immediately. Meantime make sure your financing is secure. Take care and please update us so we can follow your progress
0 votes Thank Flag Link Sat May 23, 2009
Your attorney should be local and specialize in Real Estate. The "foreclosure specializing attorney" is meant more for the seller, because dealing with the banks can be very frustrating. Your attorney will want to make sure there are no other liens on the property when they do the title search.

Your next step is to get a home inspector in to make sure you want to go forward. Chances are the utilities have been shut off and it will be difficult to see if these systems work. The home inspector will forward a report to your attorney.

Banks take forever to accept offers, but when they finally do, they want to close in less than 30 days. Get moving and good luck!

Carol Bromm, SRES, CBR
Associate Broker
Prudential Douglas Elliman- Babylon
631 422-8269
0 votes Thank Flag Link Sat May 23, 2009
Thank you for your replies. We are dealing with the listing agent. We dont have anything in writing yet as she just told me over the phone. We dont have a real estate lawyer but was advised by the lawyer my mother uses who closed some of her other properties to contact him. But we were advised by more than one person to make sure the lawyer has experience with foreclosures and the deals my mother did with him were not. So we are calling recommended ones to see if they can assist. We are also working on getting financing as this offer is requiring a renovation loan. Just was wondering if there was some type of checklist of things to get the ball moving.
0 votes Thank Flag Link Sat May 23, 2009
I am too concerned with your comment on Trulia, who did you put this offer with. If this is with listing agent (or Buyer agent), they should be explaning you the next steps. Please call your Real Estate Attorney (who is an Expert in REO Sales) and follow their advice. I hope you have a good communication with your agent (if any).
You should be getting something in writing for "Accpted Offer", your bank will need all the documents if you are for mortgage.
Good Luck....let us know how it went.
0 votes Thank Flag Link Sat May 23, 2009
I am concerned that you are posting this question on Trulia instead of speaking to the Realtor. I hope you are using a Realtor. Whether using your own Realtor or the Listing Realtor, they should be explaining the next steps to you. DP2 is correct about the next step of due diligence but there is so much more to it than that. Make sure you are familiar with the terms of the contract and meet all your deadlines. Good luck with your purchase.
0 votes Thank Flag Link Sat May 23, 2009
Did you receive that acceptance in writing? If not, then you need to get it in writing. If otherwise, then you need to begin your due diligence: order the inspection, order the appraisal (or have your lender do it if you're betting financing), etc.
0 votes Thank Flag Link Sat May 23, 2009
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer