Hi Jill,

As a Realtor who works with repeat investors, I have only a few additions to Marian's excellent answer -- regarding your questions, and from the point of view of someone who works with the many LISTED foreclosures:
The bank (or other foreclosure institution) does not have to take the offer. And iin fact, depending on the property and area, there is sometimes a "bidding war" on the house. "Cash" (meaning no financing needed) sometimes holds more weight with the company holding the mortgage - they want to get rid of the property quickly (for as much as they can), and don't want to take the chance that someone's financing might fall through. One of the many reasons to use a Realtor (remember, you're not paying your buyer's agent) is because every institution has different rules and it helps to have someone who knows how to "navigate".
Of course I'd be happy to speak with you about this!
Holly

Holly A. Henke
Realtor
Keller Williams Realty
912-247-1124

Fri May 9 2008, 09:43

Hi Jill - two words: HOME INSPECTION. When a bank forecloses on a property, they usually do not have access to the maintenance history of that home, which translates to no seller's disclosure. Without a seller's disclosure (which is a signed and acknowledged document from the seller advising any maintenance issues or repairs that had occurred during their period of homeownership), a buyer is rolling the dice as to the adequacy of the maintenance on the property. And a word of warning: If a person can't make their house payment, they probably aren't keeping the property maintenance up to par either.

Foreclosed homes come with a special warranty deed and not a general warranty deed. This may or may not affect your ability to get title insurance, it just depends on the property and it's individual history. Keep that in mind during your negotiations.

With that being said, speak to your lender and keep in mind that if you are not buying a home as a primary residence, it's considered investment property. Most banks or mortgage companies require a minimum 10% investment, but under certain circumstances (particularly if you finance with the bank that had foreclosed) they may waive that.

As an agent, YES! You need an agent - only if you are interested in a foreclosed property that has been listed through a real estate brokerage. If you are purchasing a foreclosed property on the courthouse steps, a buyer's agent will cost you and not the bank.

While it is unfortunate, typically renters who are in a property that is foreclosed on are evicted (through no fault of their own). So while it may not be hard to get renters out, beware of the damage that an angry tenant (or owner for that matter) may cause before leaving. Again, we've come full circle to the home inspection - things like cut electrical wires and cement in plumbing are becoming more and more commonplace and you need to know of these headaches prior to purchasing.

If you have any more questions, or if I can help you with anything please feel free to contact me. I have successfully sold foreclosed properties and protected the interests of my clients simultaneously. I can provide references if needed.

Thank you,

Marian Mercer, Realtor
Southern Homes and Land Real Estate
(912) 772-6683
(912) 536-8945 - cell
marian@southernhomesandland.com

Fri May 9 2008, 07:30