Question on buying in cape coral (bank owned, real estate, foreclosure)

[hrushi_j]

We are planning to buy a home in Cape Coral, fl. Is it ok to buy a bank foreclosure without an attorney? The real estate agent says that for a buying bank-owned foreclosure I do not need an attorney. Being a first time buyer I am a little bit concerned about it. Although, my agent specializes in foreclosure sales, I am a bit concerned to put in a contract without an attorney. Any advice is appreciated. Thanks in Advance!

[yachtcare]

I used to sell real estate many moons ago. I ALWAYS told the purchaser that it was in their own best interest to retain an attorney, especially if they did not know the finer workings of "contract law". My first thought would be to question the motives of the agent.

Other than that....You've kinda answered your own question...If you have any "concerns" it would behoove you to pay the attorney for a little peace of mind, particularly with such a large investment.

I'd also caution you to do some research regarding "chinese drywall" and the potential it has to destroy your investment, if you get suckered into purchasing a home that has it installed. Not to mention the possible health hazard involved. Which could be that motive I was thinking of in the first paragraph......

[aidaolympia]

Originally Posted by yachtcare

I used to sell real estate many moons ago. I ALWAYS told the purchaser that it was in their own best interest to retain an attorney, especially if they did not know the finer workings of "contract law". My first thought would be to question the motives of the agent.

Other than that....You've kinda answered your own question...If you have any "concerns" it would behoove you to pay the attorney for a little peace of mind, particularly with such a large investment.

I'd also caution you to do some research regarding "chinese drywall" and the potential it has to destroy your investment, if you get suckered into purchasing a home that has it installed. Not to mention the possible health hazard involved. Which could be that motive I was thinking of in the first paragraph......

Great advice!

With Chinese dry wall, the value of your house is 0 !!
And the cost to your health...??

[hrushi_j]

Thank you all! I agree with you. I started reading the contract; the Chinese drywall contingency is explicitly mentioned in inspection section. However I am having a hard time understanding the legal language of the contract. I think it is important to seek an attorney advice. Not that I don't trust my agent, but for buyer protection. My real agent said that buyers usually don’t use an attorney for foreclosure purchases in Florida because by the time the attorney gets back with his review, I may miss the deal.

[yachtcare]

Are you paying your Realtor? In other words is he/she a buyer's agent? If not, remember he/she has a fiduciary responsibility to the seller(in this case the bank)and is working in the best interest of the seller, not yours.....Are you sure you trust the agent?

I'd sure love to read that "chinese drywall contingency" on the contract.......

[aidaolympia]

Originally Posted by hrushi_j

Thank you all! I agree with you. I started reading the contract; the Chinese drywall contingency is explicitly mentioned in inspection section. However I am having a hard time understanding the legal language of the contract. I think it is important to seek an attorney advice. Not that I don't trust my agent, but for buyer protection. My real agent said that buyers usually don’t use an attorney for foreclosure purchases in Florida because by the time the attorney gets back with his review, I may miss the deal.

Compare to two years ago, much nicer houses have been put on the market as the economic condition worsens.

Why such a rush when it comes to such important decision about your health and money?

Having the right kind of lawyer is very important.

[nhkev]

I have had two situations in the last 2 weeks regarding real estate and lawyers and both times when I have called I was able to speak directly to the lawyers right away and get what I needed done in about 2 days. It sounds like the agent is giving you advice to deter you from hiring a lawyer which is very concerning.

[FLBob]

I believe that the bank must pass clean title at closing, but if I was buying a bank owned property I'd want an experienced Florida real estate attorney to review all the documents and filings on the property. When I purchase property I always select the title agent/attorney and have the attorney represent/advise me. On foreclosed property the bank typically selects the attorney doing the closing. While I have the experience to locate and review the recorded documents I still feel more comfortable knowing that an attorney has looked into things on my behave. I'd rather pay the fees and sleep at night.

[hrushi_j]

Thank you all again!
I just found out from my agent that I missed the deal because I failed to turn in the contract by 5.00 PM yesterday. I called a few lawyers in Cape Coral only to find out that most of them charge $200-$250/hr . I still feel that it’s very important that the contract is viewed by a lawyer. Now that I have time, I will keep on looking for a lawyer who I can work with me for future proposals.

In New Jersey (where I live), the lawyers charge only $800 flat for the whole contract. Not sure why lawyers in FL are so expensive.

[yachtcare]

Originally Posted by hrushi_j

Thank you all again!
I just found out from my agent that I missed the deal because I failed to turn in the contract by 5.00 PM yesterday.

Certainly not trying to beat ya up here, hrushi, sounds like youre getting a crash course in contract law 101. But I mention certain things you may already know for the benefit of others that may read thru the thread in the future.

A successful contract is one in which all parties find themselves in a win-win situation. By constraining the time element in which to review the contract, you shorted yourself. Of course you cannot just leave an open ended amount of time to review, or the seller is left hanging unfairly.....

Everything you have mentioned about this contract sounds as though the agent(notice I didnt say "your" agent) was seeking an unfair advantage over you, in the best interest of his client. And trying to get you stuck in a binding contract before you knew what the score really was. Nothing wrong with that,(believe it or not) that is what they are paid to do. But in light of the fact that buying real estate in SW Florida is kinda like playing russian roulette with your financial future right now, CAUTION is your best friend....

And as I mentioned before, make sure you KNOW, for WHOM the agent works! Know the difference between the terms "client" and "customer".