My husband & I "flip" houses for a living. Some agents are scared of foreclosures mainly because they have not had too much experience with them. Always purchase a foreclosure with right to inspection and have your agent find out the right of redemption date. For heaven's sake, use a "buyer's agent" to assist you. Foreclosures are a common thing now. However, just remember, foreclosures may not always be the "best" bargain on the market. If you use an agent who is familiar with the process, you should not have any problem. Just be patient with the process. If you have questions, give me a call. I can be reached at 205-223-5570 or email me at jthrasher@realtysouth.com. Good luck. Now is the time to buy!

Most agents think all forclosures are sold "As Is" This is not true! This is why you need an agressive Buyer's agent.

Having done a few foreclosures, here is what I have found:

Write into the contract that the SELLER will have ALL utilities turned on and if winterized, to be de-winterized for the home inspection. To date, I never had a bank refuse to have the utilities turned on, and only one bank refuse to pay for the de-winterizing of a home (a cost of around $125), my buyer made a full price offer on. My Buyer backed out of the deal just for that reason. Five days later, the bank lowered the price of this home $10,000. They would not pay the $125 to have the home de-winterized, but could lower the price $10,000. No wonder banks need a bail out, but that's another story.


Every foreclosure my Clients ever bought was always listed "AS IS", however, I always wrote into the contract that they still have the right to inspect and back out of the deal, based on the results of that inspection and get their earnest money back. Once again, I never had a problem here.

As far as the Bank's Addendum. If it was in the original, but directly contradicted in the Bank's Addendum, no matter what the Selling agent tells you, there is nothing wrong with drawing a line through the area of the Bank's Addendum you do not agree with and writing the words "See Original Contract" Have your Client Initial it and send it back to the Seller's Agent. - Once again I have done this also, with little to no problems.


One last item. I have been told by several foreclosure agents, the home is being sold "As Is" so do not ask for any repairs. If it is important to your Client, ASK and insist the Seller's Agent present it to the bank or mortgage company, I have on a few items and got the repairs done for my Clients on the banks dime.

Good luck to all Buyer's Agents and do not let foreclosure agents bully you, as they will try to do!

When buying a foreclosure you need to be aware of the "Right of Redemption” which applies in most, but not all cases where homes are foreclosed. Sometimes the right of redemption is forfeited. Just make sure you know if it applies to the property you are purchasing, when it ends, and that your buyer’s agent explains all of its implications. I have assisted buyers in the purchase of quite a few foreclosures and there can be some good deals. Just keep in mind that not every foreclosure is a bargain...particularly when it first goes on the market.

One of the common problems with a foreclosure is that the utilities have been turned off, and if the appraisal notes this, which it most likely would, it could cause issues with bank financing for you. Also, foreclosures are sold as-is, so you cannot negotiate if your engineer finds a problem.

There is not too much of a difference, however, I would recommend using an agressive Buyers agent that have done forclosures in the past.

I would be more then happy to be your Buyer's agent. Feel free to give me a call (205) 267-2673