If you owe taxes to the IRS or the State, they stay with you despite a foreclosure. In any case, I suggest you consult with an Attorney who handles residential real estate matters, to portect your interests.... more
I happen to live in South Lyon, and have been there 6 years now. Trust me ... seeing all the foreclosures there and everywhere is painful as a homeowner, but as a buyer, it is truly an amazing opportunity and incredible time in history to take advantage.
Your question is a good one, and an involved one. The main difference between purchasing a privately-owned home and a bank-owned (or REO) property is that a private seller may be willing to make repairs, etc. whereas banks likely will not. Also, banks are much less likely to take a sale or closing contingency (meaning they will not wait for a Buyer to sell and/or close on property).
Some other items may be that the purchaser absorbs a few more costs (i.e. tax and transfer stamps) then when purchasing a regular retail home. The procedure is by and large the same, and the benefits of purchasing a foreclosure could be vast if the value in the property is there, which could make for a very wise investment down the road. When purchasing ANY property, you want to be sure you and your agent review the contract verbiage IN DETAIL!
I have enjoyed living in South Lyon and am blessed to have done a great deal of business there. Feel free to email me if you like.
Derek Bauer, Associate Broker / Realtor
Real Estate One
734.678.4745 - direct