Buying a foreclosure? You better check twice. . .

By
Real Estate Agent with Joy Daniels Real Estate Group, Ltd.

No one likes to talk, think or deal with foreclosures - except buyers. Buyers seem to like the idea of a bargain. A home becomes a foreclosure property when a property owner goes 3 months or longer without making a payment to the lender. At this time, the lender is legally allowed to proceed with reclaiming the property, also known as the "foreclosure process." Not all lenders start the process immediately, but they are permitted to do so by law. Once the property is reclaimed by the bank/lender, it is technically considered to be a "foreclosure."  Yes, we even have foreclosures in Central Pennsylvania.

There are the top 3 things a buyer should know about buying a foreclosed home.

1. The owner is a bank, and while there is staff available to talk to (sometimes) you are not dealing wiht emotion - it is purely a business tranaction. You cannot tell a bank what to do, they will do what they want to do. Banks DO NOT care about your personally.

2. There will more paperwork that with a typical sale. Often they have their own contracts and procedures.

3. The bank will not complete a Seller Disclosure, they know nothing about the house and again don't care. The house is being sold "as is" and you can do inspections, but you can't negotiate repairs, they are your total responsibility OR you can back away. . .typically you can't negotiate.

So if you are looking for a foreclosure BEWARE and BE PREPARED!

Dauphin County Foreclosure Statistics 2012

Posted by

Joy

Joy Daniels, GRI, ABR, CSP, e-PRO
JOY DANIELS REAL ESTATE GROUP, LTD
2793 Old Post Road, Suite 200
Harrisburg, PA  17110

(717) 695-3177  office - Call TODAY and let me help you find your dream home!

www.joydaniels.com

Joy@JoyDaniels.com - Email TODAY and let me help you find your dream home!

What is your home worth?  Find out at MLS Market Snapshot

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  1. Robert L. Brown 07/24/2012 10:06 AM
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Topic:
ActiveRain Community
Location:
Pennsylvania Dauphin County
Groups:
Advice for Buyers
Short Sale Specialists & Pre-Foreclosure Education
Realtors®
Mastering Buyer Agency
1st Time Buyers
Tags:
harrisburg
central pennsylvania
avoid foreclosure

Comments 26 New Comment

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Rainmaker
561,400
Joy Daniels
Joy Daniels Real Estate Group, Ltd.

Those is a very crucial points to know in all of real estate - "buyer beware" - but especailly with REO's! 

July 26, 2012 06:11 PM
Rainmaker
451,056
Teral McDowell
Residential Sales in Collin County, Texas
Keller Williams Central

Joy, some really good advice to share with buyers; sometimes all they can conceive is a bargain and that isn't always the case.

July 26, 2012 07:15 PM
Rainmaker
561,400
Joy Daniels
Joy Daniels Real Estate Group, Ltd.

You are right Teral - that is why hopefully a buyer uses a good Buyer Agent to represent and guide them! :)

July 26, 2012 07:19 PM
Rainer
48,998
Kim Burton
Prudential Bob Yost Homesale Services

I do a lot of forclosures with my buyers and all of your points are accurate.  The hardest part is finding a forclosure for the average buyer that will pass an appraisers review, but can be great transactions when they do.  

November 17, 2012 09:46 AM
Rainmaker
97,490
Rosie Moore
Serving Sugar Land, Richmond, Rosenberg, Missouri City

Very good post. I loved reading the comments your post generated. Thanks for highlighting important info that buyers needs to know (and agents who may not be familiar with REO's) when considering a foreclosure purchase.

July 01, 2013 03:23 PM
Anonymous
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Rainmaker
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Joy Daniels

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