Foreclosure in Woodbridge>Question Details

Aleshia, Home Buyer in Virginia

Does it really take several months to purchase a foreclosure?

Asked by Aleshia, Virginia Thu Jul 17, 2008

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If you listen the stories on the news it takes forever, however that's just not true. Most of the offers we have submitted to banks were approved within a two days to a week. I always recommend to our clients that they give themselves some flexibilty around settlement date. Settlement can be delayed a few days, however I have not had experiences with huge delays.

Now if you purchase a SHORT SALE (Pre-Foreclosure Home) those can take months.

I hope this answer helps.
1 vote Thank Flag Link Fri Jul 18, 2008
I agree with all prior posts, I just want to add that I recommend using your own title company no matter what the bank says. You have a better chance of getting the paperwork right when you have someone YOU HIRE looking over the docs. Their title companies seem to always be overwhelmed, which means more delays and sloppy paperwork. I did have one settlement this week that was their title company and it was seamless, so that is not always the case... but generally speaking, I encourage you to hire your choice of title company.
0 votes Thank Flag Link Fri Jul 18, 2008
In general, you should plan extra time for a bank owned property to get to settlement, even though you might get lucky with a quick settlement like the one mentioned by Cindy. Be cautious and plan accordingly.
0 votes Thank Flag Link Thu Jul 17, 2008
I have had them close in three weeks from ratified contract to settlement. However you can get caught in the dead zone between when you have an offer "accepted" by the bank and when they actually sign and return the contract. I suggest to my clients that we put the terms "within 30 days of contract ratification" on our offer. That way when the bank takes 10 days to send us the paperwork we aren't scrambling and facing the banks penalty for a delayed closing.
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0 votes Thank Flag Link Thu Jul 17, 2008
Not necessarily. If the foreclosure has been completed and the property is bank-owned, the process can be very fast - less than a month. In fact,banks will counter-offer timeframes if they otherwise find an offer acceptable. You will need some time to get your inspection(s) done, and to arrange for financing (which includes lender inspection/appraisal, underwriting, etc.). I recommend using a local lender. On the other hand, if it's a short sale, you could be in for a long wait. Of course, you should have a Realtor (buyer agent) in your court as well - to help you find the right place, write your offer, keep track of all the details, etc. Best of luck!
0 votes Thank Flag Link Thu Jul 17, 2008
With any property from the point of an executed contract will take approx. 30 days prior to close, with banks little longer
0 votes Thank Flag Link Thu Jul 17, 2008
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