| As a real estate agent in Bend Oregon, Bend | | | | pit, a Home Inspection performed by a reputable and |
| Foreclosures are one of the few market segments | | | | licensed Home Inspector can alleviate any real worries |
| that are generating a lot of buzz right now. This has | | | | or concerns you might have with a foreclosed home. If |
| held true in many real estate markets across the | | | | the home has some substantial problems, banks on |
| nation. It is not unusual to see multiple offers on these | | | | occasion, are willing to repair or replace the item(s) in |
| properties despite the sluggish sales in other sectors of | | | | question. |
| the real estate market. | | | | As an example, one recent foreclosure I worked with |
| One recent offer I wrote on behalf of some first time | | | | clients on was found to have a leaking Hot Water |
| home buyer clients had received a total of 15 offers | | | | Tank after the water was turned on for the home |
| on it. While that may be an extraordinary amount of | | | | inspection. Even though the bank was selling the house |
| offers on one home, it demonstrates that there are | | | | 'As Is' I was able to negotiate the replacement of the |
| definitely active buyers in what might otherwise | | | | tank which saved my clients around $600. While not |
| appear to be a slow real estate market. | | | | every bank is willing to do this, the approach that is |
| THINGS TO CONSIDER WITH FORECLOSED | | | | taken with them can sometimes make the difference |
| PROPERTY | | | | between a Yes and a No. |
| The great prices on many foreclosed properties had | | | | TIP 5: If you want further protection against physical |
| generated a lot of interest among prospective buyers. | | | | defects of the home, you may also wish to purchase |
| Naturally many buyers are concerned about what | | | | a home warranty on the home at the time of sale |
| exactly you are purchasing with a Bank Owned home. | | | | which covers potential issues like a roof leak, appliance |
| Generally speaking, the banks take care of paying off | | | | break down, electrical and plumbing issues. Depending |
| any known outstanding liens on the property and also | | | | on what you wish to include in your warranty, the cost |
| pay real estate and escrow costs associated with the | | | | is generally between $400 and $600. Be sure and |
| sale. As a Buyer you will generally not have any | | | | thoroughly read through the items that are covered in |
| additional expenses buying a Bank Foreclosure. | | | | your policy if you choose to buy a home warranty to |
| The main thing buyers need to keep in mind when | | | | insure you know what exactly is covered and what is |
| purchasing an REO (Real Estate Owned) home is that | | | | not. |
| in most cases, they are purchasing the foreclosure 'As | | | | TIP 6: Once you are satisfied with the condition of the |
| Is' meaning that the bank makes no representations as | | | | property and the transaction is completed, you own |
| to the physical condition of the property and will not | | | | the home like any other homeowner does. As long as |
| warrant the home against any physical defects. | | | | your purchase is closed through an Escrow company, |
| TIPS WHEN PURCHASING A FORECLOSURE | | | | make sure the property you've purchased is covered |
| TIP 1: Don't buy a foreclosed property at an Auction. | | | | by Title Insurance which protects you against financial |
| The reason is because you are not allowed to view | | | | loss caused by any defects in the Title transfer |
| the interior or inspect the property you are purchasing. | | | | provided to you on the property. |
| There are no refunds and no entity that is held | | | | When it comes to purchasing a bank foreclosed |
| accountable for any hidden issues that are discovered | | | | property it might be wise to opt-in to an Extended |
| after you purchase the property. | | | | Policy Coverage, which in many cases can potentially |
| TIP 2: Get reliable data on comparable properties | | | | protect you against any unforeseen liens that might |
| within the same and similar neighborhoods as the | | | | arise on the property caused by any former owner. |
| property you are interested in. You'll learn what other | | | | The Banks from which you bought the home will not |
| homes are selling for, which homes aren't selling and | | | | protect you against further liens that might be placed |
| why, as well as the trends in pricing that are currently | | | | on the property from the actions of previous owners. |
| going on within that price range of home. These | | | | While rare, it can happen and this is why Extended |
| comparables are best found by utilizing the services of | | | | Policy Coverage on your Title Insurance might be a |
| a reputable Realtor who can give you the latest | | | | wise option. Be sure and discuss your options with |
| statistics. | | | | your Title and Escrow Officer to understand what |
| TIP 3: Get your financing in order. Foreclosed Homes | | | | their policies cover and what they don't. |
| that are owned by Banks will not even consider an | | | | The biggest problem most buyers have at the |
| offer from you if you have not been pre-approved for | | | | moment with Foreclosures is learning about them |
| a loan by a Bank or Lending Institution. There is nothing | | | | quickly enough so as to be able to write an offer on a |
| worse than seeing the home of your dreams and then | | | | foreclosed home of interest. As mentioned, many of |
| losing out on the home because you didn't have your | | | | these properties are receiving offers on them within a |
| financing approved and the other buyer did. One other | | | | couple of days or even hours of being listed. |
| tip to consider is that Cash is King in a banks eyes. | | | | Tip 7: To avoid being left behind in locating and |
| Even if your offer is for a higher purchase amount | | | | obtaining a foreclosed property, securing the services |
| than a fellow buyer who is paying all cash, chances | | | | of a reputable and trusted Real Estate Broker which |
| are the bank will favor the all cash offer. | | | | can go a long way in keeping you ahead of the |
| TIP 4: Once you've located a good candidate and to | | | | Foreclosure market and hearing about the very best |
| help insure that you are not buying a potential money | | | | deals. |