Home Buying in Kent>Question Details

Robert, Other/Just Looking in

Can anyone explain when an ad states "subject court approval"? I hear horror stories about bank owned properties - is there a difference?

Asked by Robert, Sun Oct 10, 2010

166 KENT CORNWALL RD, Kent CT 06757

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Robert -

The house in question is subject to court approval because it is part of an estate, so the probate court must approve the sale. This may add some time to the closing, but here in Connecticut these sales tend to proceed rather quickly.

However, this property is currently under deposit, which means there is an accepted offer that is subject to various contingencies.

When you listed to real estate advice, make sure it is fro ma local agent. Real estate laws are governed at the state level and thus vary from state to state.
1 vote Thank Flag Link Sun Oct 10, 2010
It could also mean that the seller is in bankruptcy or that the property is in probate. This can sometimes just mean a delay in the process. Sometimes, the property stays on the market until court date and your offer could be bumped for a better one. Make sure you know the particular details.
1 vote Thank Flag Link Sun Oct 10, 2010
I haven't seen one in an REO, only estate sales or pertaining to guardianship. I can tell you that most people stay away from these, making for less demand and more opportunity for you as a buyer. These things can take a longer time, but can be very worth it when everything is said and done.

The horror stories are told by people like me to keep people like you from showing interest. This keeps the price I'll have to pay down.
0 votes Thank Flag Link Sun Oct 10, 2010
Aside from an estate sale, there also could be an issue where there is a guardianship.
0 votes Thank Flag Link Sun Oct 10, 2010
Robert,
Yes, there is.

A sale that is "subject to court approval" could involve the distribution of proceeds in a divorce or estate situation, for example. The broker running the ad is giving potential Buyers a "heads up", so they're aware that the purchase may take some additional time. However, the Buyer could get an excellent buy.

If you purchase a bank-owned (foreclosure, or REO) property, the approval may be quicker ,and the property could be a bargain as well, but there could be the potential for title issues For example, recently, in Florida (where I live) and 23 other states GMAC (Ally), Chase, and Bank of America have suspended foreclosures due to questionable procedures during the actual foreclosure process. This mess could take a L-O-N-G time to straighten out.

If I were buying, I'd pick the one that's "subject to court approval." Good luck with your home search.

Warm regards,
Maggie Hawk, REALTOR
Watson Realty Corp.
0 votes Thank Flag Link Sun Oct 10, 2010
That means it is a pre-foreclosure and it will take a while to get a court response to approving the contract. read my blog comparing reo's to short sales, click my name and read my blog and comment. Thanks!
0 votes Thank Flag Link Sun Oct 10, 2010
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