There are typically no addition cost to the buyer for back taxes,liens or HOA fees on Bank Owned Foreclosures.It is usually the banks duty to make sure all these cleared up prior to the closing. While in some rare occasions some banks do ask the buyer to pay the doc stamps which run .007 per $1,000.
All offers must be written offers, on an As-Is contract only Some banks supply addendums in advance, and if that is the case it will be in the MLS as an attachment and should be signed and dated and submitted along with your offer. In most cases, however, the bank addendums are provided only after buyer and seller come to agreement. At that time, the bank will send their bank addendums/counter offer for buyer's signatures. Please note at this point, the bank has still not signed anything, and most likely will not sign until ALL forms have been signed by the buyer. Your offer is considered a pending contract until it is returned from the bank/seller with their final approval. In the interim, all offers that come in must be presented. When signing and initialing a bank addendum, do not alter it in any way or it will be rejected.
The usual time frame for a response to your offer is 3-5 business days, although sometimes a little sooner and occasionally a bit longer. Allow plenty of time for acceptance, and for closing the deal, 30-45 days in most cases.
If you are requesting seller concessions for buyers closing cots, pre-paids, or repairs, make sure those are requested in the written offer, as adding these things at a later date can be very difficult and most times impossible. If you are writing an offer for an FHA or VA purchase, please make sure the property will meet the standards for this type of financing. The majority of the time, repairs are not permitted prior to closing. Ask the lender if they allow the buyer to escrow their own funds for repairs.
Once you have a fully executed contract, time is of the essence. All inspections must be done in a timely manner according to the contract. Should the buyer not be accepting the conditions, written notice must be obtained prior to end of inspection period along with a signed cancellation and release form. Some banks will make earnest money non-refundable after the end of the inspection period. Read your addendums carefully.
Please note that bank owned properties closings are considered mail-aways, because the title companies that are used to close the transactions are usually located out of our general area. Some will send a mobile notary to the buyers agents office to close the transaction and then all documents are overnighted to the title company, but it is not considered officially closed until all original documents and funds are received.
Thought I'd answer this from a NH perspective. I have listed and sold many foreclosures here. In each case, the seller paid all liens, back taxes, etc. The seller has to convey a clean title that is free of encumbrances. The taxes are prorated as of the actual closing date, as in any other sale. Many people have asked me if they should buy a home at the foreclosure auction? My answer is do your homework!! If you purchase at the auction, you are purchasing with any of these outstanding items due, and in some cases with occupants that will need to be evicted. If you wait for the property to be listed with an agent and then make your purchase, you will be getting a clean insurable title to the property at closing, with no occupants. Many corporate sellers will dewinterize and rewinterize at their cost for buyer inspections, but many will not. If there is any question, it can always be an offer contingency.
You can get an outstanding deal on a foreclosure; BUT, because there are so many distressed properties in the market right now, many homeowners have been forced to lower their asking price dramatically in order to compete. Last week I sold a beautiful property in Port Charlotte in a $400.0k-$500.0k neighborhood for $54.23 a square foot. This was a 2007 completely remodeled and never lived in very updated home. It was a great deal. It is immaculate. Buyer's will still need a solid inspection but they don't have the headaches and expenses of rehabilitating a property that hasn't been kept up or vandalized. So don't eliminate Homes that are not REO's thay too are out there @ great prices.
Please feel free to contact me with any further questions at any time: 941-268-8918
Keller Williams Realty
Port Charlotte, Fl
RE/MAX Alliance Group
Past payments, late fees, default fees, increased interest rate fro time of default, attorneys fees, trustee fees, title fees, signage fees, publication fees, clean out fees just to list a few.
Buy a home after foreclosure expert
Helping families/people that have lost their homes get back into another in as little as 6 months
Hope this helps,