Home Buying in Chevy Chase>Question Details

Terry, Home Buyer in 20002

How does the purchase of a "foreclosure" differ from the purchase of a house that is being sold by the owner. Is it more difficult?

Asked by Terry, 20002 Sun Dec 23, 2012

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If you have an experienced Buyer's Agent assisting you, the purchase of a foreclosure/REO property can be less daunting, actually, than purchasing under a short sale scenario. The good thing is that there are disclosures (sometimes very intimidating) that's provided by the selling bank which outlines the terms under which the property is being sold.

Because foreclosures are usually sold in an As-Is condition, it's best to also consider a 203K renovation loan, just in case the property doesn't pass inspection.

0 votes Thank Flag Link Fri Jan 18, 2013
Who has worked as buyer's agent for someone purchasing a foreclosure property in Bethesda and Chevy Chase in 2012? Do you have any recommendations?
0 votes Thank Flag Link Thu Dec 27, 2012
Hi Terry,

I've represented both buyers who've purchased bank-owned properties, and the banks themselves who have listed the properties so am well-versed in the process from both ends. I do have recommendations I can share with you. Feel free to contact me at jan.brito@longandfoster.com
Flag Sun Dec 30, 2012
Hi Terry,

Foreclosures are generally sold "as-is" and the seller will make no repairs. They often don't have utilities servicing the property or have it winterized which means you would have to set up those services to do your inspections.

If you are using an FHA or VA loan you would have to insure that the home would pass all appraisal inspections OR be prepared to make any lender required repairs at your expense prior to settlement.
0 votes Thank Flag Link Wed Dec 26, 2012
Hi Terry,

The biggest difference is the bank and owner sold home is the bank does not have to provide disclosures and the property is sold as is.

Good luck
0 votes Thank Flag Link Sun Dec 23, 2012
There are different types of Forclosures. The best deals of forclosures are where you purchase at auction te other types of forclosures. Are Fannie Mae , freddie Mac,va,FHA and so forth if you are looking to buy would be more then happy to assist
Good luck
0 votes Thank Flag Link Sun Dec 23, 2012
It really depends on the bank that owns the property. In general, bank-owned properties can take longer to close than a "regular" sale and there may be more paperwork hurdles to clear. Bank-owned are typically sold as-is, and the bank may require use of their own contract forms. Aside from that, it's not too bad. Short sales are much more frustrating for the buyer! :o)
0 votes Thank Flag Link Sun Dec 23, 2012
You absolutely need the guidance of a Buyers Agent through-out the process. There are so many variables to work through. I find that most buyers I work with looking for a foreclosure are focused on price. That is fine however I want to make sure you are not losing sight on other important issues that could affect you in the long run of your purchase. Also, don't set aside the possibility of a Short Sale. 90% of my listings are Short Sales and buyers are catching on to the fact that these are fantastic deals!
0 votes Thank Flag Link Sun Dec 23, 2012
Hi Terry,
Both scenarios should require that you be represented by a buyer's agent to protect you and to guide you in the homebuying process and be able to show you any potential problems. If you have a qualified buyer's agent representing you, either scenario should be smooth.
0 votes Thank Flag Link Sun Dec 23, 2012
for one thing; a Foreclosure necessitates a Buyer's Agent for you.
for a FSBO, you are free to make your own mistakes.

A Foreclosure will have a Clear Title and all the Liens will be identified and satisfied.
A FSBO might any combination of hidden problems.

Good luck and may God bless
0 votes Thank Flag Link Sun Dec 23, 2012
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