Buying any house can involve lots of complications; buying a foreclosure can have even more hurdles. When buying a foreclosure, the seller is not an individual, but a bank, and banks can be very difficult to deal with. You can get a great deal buying a foreclosure, but be prepared for some of the obstacles.
First, banks do not negotiate fairly. They may hold your offer for days in hopes of getting other offers. Also, they often do not move from their asking price. Take or leave it is there mentality. Also, foreclosures will almost always be sold as is. Some banks do not even allow for an inspection contingency. In some cases, the bank will not allow utilities to be turned on prior to closing. Be sure to be extra diligent before making an offer on a foreclosure.
Often when dealing with a foreclosure, the bank will want you to close with their attorney. You may want to hire an attorney anyway to look out for your interest. There may be title issues from the past that could affect your ownership of the property. If there are delays in closing, some selling banks require a per diem fee in order to extend the contract.
These are just some of the potential difficulties to be prepared for when buying a foreclosure. I have successfully closed on many foreclosures and would love to help with your next purchase.
Lee Hamilton
803 322 4340