Purchasing a Foreclosure or Short Sale

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Do I have To Pay Cash?
No! You do not have to pay cash if you are buying a foreclosure or short sale. It's just like any real estate transaction. You can purchase the home with a mortgage, and the mortgage can be any type. (FHA, VA, Conventional, Etc.). If you want to pay cash, that's ok too. Contact me or one of my sales representatives for more information on how you can get started.

Property Condition & Inspections
You will have the opportunity to have a traditional home inspection, termite inspection, and any other inspection you like when purchasing a foreclosure or short sale property. In most cases, anything you find wrong with the house will not be fixed by the seller. You do have the right to cancel the contract if you find major problems. There will be a dollar limit in the contract that allows you to do so. Let's say the limit is $1,000. If you find issues with the house that would be greater than $1,000 to fix it, you have a right to move forward and fix the issues yourself, or back out of the contract. You are completely protected.

Liens Against the Property
This is a common question. Will there be liens against the property when I purchase it? Am I responsible for them and the taxes? When you purchase a home in foreclosure, there are no liens that will not be removed before you close. When you close, the title company will make sure that all liens and judgements are removed or they will not give you a "Clear To Close". That means one thing, you're not closing if there are any liens they can't remove. The title company will be providing you title insurance when you buy and close. They would not provide you that insurance if the title was not clean and cleared by them. And the search by the title company is extensive!

How Long Does it Take to Close?
Purchasing a foreclosure that does not require a short sale, can be closed on right away. You and the seller negotiate the closing date and time and that's when you close. When purchasing a property that does require a short sale, the process can take up to 8 weeks or more. in some cases, we have obtained the approval from the lender in as little as 2 days. But most times it does take longer. The good news for the buyer is, it's worth waiting for! You're normally getting a great deal!