Post # 1
I’m going to buy a house soon. I plan to pay for it cash, so it will most likely be a forclosure. I’m aware of the different things that may need work, which isn’t a problem for me, unless it’s major.
I just have two questions:
1. When do I call in my inspector? Is it when I make the bid? If something is MAJORLY wrong with house, can I remove my bid?
2. What is the difference in bank owned and real estate owned?
Post # 3
I suggest talking to a real-estate lawyer.
Post # 4
You probably won’t be able to see inside the house until after you bought it. There may or may not be people that you need to evict from the home. Most bank owned foreclosures are sold on the court house steps in an auction that you pay cash for. You probably won’t even know if there is a second loan on the property until after you buy it (you should get your own title insurance). I agree that you should talk to a lawyer.
Bank owned and real estate owned are both owned by a bank. It becomes a REO when the bank can’t sell it at a foreclosure auction. They will then sell it through more traditional means. On these homes, you should be able to get an inspection like a normal purchase before you officially close on the home and that is what determines if you go through with the purchase or not.
Post # 5
1. You make an offer and make the offer contingent on the inspection. If the seller’s accept the offer then you have your inspector come into the house. If they find something wrong you can get out of the sale and pull your offer. Or bargain to make the seller’s fix the problem before you close.
Post # 6
I’d be really cautious about buying a foreclosed property. People can do some ugly things when they’re bitter about losing their home. I’ve heard of inhabitants dumping cement down the drains or failing to take out the trash for months – basically an “If I can’t keep it, someone else has to pay” mentality. And with most foreclosure purchases, you’re buying it “as is” – having it inspected is usually not an option. Once you’ve made the purchase, there’s no turning back.
Post # 7
I’ve looked at a few online and am going to see some one Sunday with a realtor.Now I’m thinking, maybe they aren’t foreclosed, if it doesn’t say Sold As Is? Maybe they are just cheap? Argh. This is confusing.
I’m glad I can pull my bid anytime I want. I was just worried about that aspect of being stuck in something.
Post # 8
Being Sold As Is means that if something does come up wrong in the inspection the seller probably won’t fix it. And it might be a red flag for “something is wrong”.
Or it could just mean the seller has already moved out of state and doesn’t want to come back to deal with fixing any problems or making changes.
Post # 9
Ok, NOW I get it. I didn’t look at the Sold as Is houses beforehand because reading that,before you even told me what it meant, made me nervous.
I’ve read a lot, but not enough. I just want to be super informed.