Foreclosure - Hidden Costs

Asked by Jenn, Newington, CT Tue Dec 30, 2008

I am just starting my search at homes and would like to look at foreclosures. What do I need to know? What are hidden costs that I need to be aware of? What questions do I ask? I know sometimes back taxes can be owed. At what point can a potential buyer get all of the information needed in the research process?

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Colvina’s answer
Colvina, , 06119
Thu Apr 21, 2011
You should have an experienced professional on your side. This will help when it comes time for the offer, for inspections and further advice on financing.
An experienced full-time agent will be able to educate you in all these areas.
The use of an attorney familiar with the forcloseure process is also a plus and can be instrumental along with your REALTOR in making this a more pleasurable experience.
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Don Fabrizio…, Agent, Danbury, CT
Tue Dec 30, 2008
If you are buying a home that has already been foreclosed on by the bank, then all past liens should have already been taken care of when the title transferred to the bank.

If you are buying at a foreclosure auction, then you will need to do your homework ahead of time at town hall to verify any and all liens that you may be responsible for.

If you are buying a pre-foreclosure home from the owner, then you should not close on the sale until you have verification that all liens have been or will be removed at the time of closing.

All foreclosure sales are as-is sales, so you will want to take a good look at the home prior to making an offer. You will want to ensure you will have an inspection period, so you can have your inspections done, but these will be for your own knowledge.
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Amanda Albert, Agent, Woodbridge, CT
Tue Dec 30, 2008
You can get all the information you need immediately from your Realtor. The biggest problem with foreclosures is that you are buying the house as is. This means that it is very important to have an inspector come in to tell you exactly what you are buying. Then you make the decision to move forward or not.

If there are back taxes, liens, etc....when you are ready to close on the property (take posession), your attorney will do a title search, find out what is owed and make sure that you get a clear clean title. If there is any money to be paid by you, the buyer, you will be told in advance. Also, you will be buying title insurance to make sure you have a clear title at closing.

Amanda 860-916-2744
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