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Old 05-21-2018, 11:04 AM
 
Location: Lakewood Ranch, FL
5,113 posts, read 7,641,911 times
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Quote:
Originally Posted by phantom4 View Post
And one more point I didn't mention, though not sure it is relevant to the questions I asked, it is Foreclosure, the property is owned by financial institution (bank) in NJ.
Get a real estate attorney...period. So much that can go south on you....not that it will but get an attorney.
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Old 05-21-2018, 11:15 AM
 
Location: Rochester, WA
3,828 posts, read 2,050,555 times
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Quote:
Originally Posted by phantom4 View Post
And one more point I didn't mention, though not sure it is relevant to the questions I asked, it is Foreclosure, the property is owned by financial institution (bank) in NJ.
Relevance is that it may affect the kinds of financing the house will qualify for. Foreclosures often have repair issues that are beyond what VA, FHA or even conventional financing are willing to accept as is, and the bank-owner is typically unwilling to pay for any repairs to bring it UP to the standard your financing may require.
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Old 05-21-2018, 12:56 PM
 
Location: southwest TN
8,175 posts, read 14,253,018 times
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Contact the NJ Bar Association Lawyer Referral Service - if you are in/near Newark, there is a clinic at the law school which provides you with a 3rd year law student. At the very least, do not sign anything until you get legal advice to understand what you are committing to.
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Old 05-21-2018, 03:22 PM
 
Location: Former LI'er Now a Rehoboth Beach Bunny
7,243 posts, read 9,593,264 times
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Quote:
Originally Posted by phantom4 View Post
And one more point I didn't mention, though not sure it is relevant to the questions I asked, it is Foreclosure, the property is owned by financial institution (bank) in NJ.
You MUST and I Do mean Must get a REAL ESTATE attorney. Not a "I do it all attorney". Do you understand all the pitfalls and problems purchasing a foreclosure? You do know that it can take months and months for these to settle, right? Above all, I can't stress enough that you need a RE attorney.
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Old 05-21-2018, 11:09 PM
 
6,121 posts, read 3,318,365 times
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Quote:
Originally Posted by phantom4 View Post
Hi, looks we found good house we were looking for, and in order to make the offer we have to sign few documents, including sales contract, and I have few questions:

0. Is it a good idea to sign sales contract without attoney?

1. The contract states the terms of mortgage: Principle Amount, Downpayment, and Terms of Mortgage - 30 days. But the point is, that we still haven't finally decide on the terms, we are considering 15 years term. I wonder why sales contract even has the mortgage terms, why seller bothers about it?

If I sign the sales contract as is (mortgage term 30 years), does it mean I will have to apply for 30 years mortgage, and will not be allowed to apply for 15?

2. There are "initial" and "additional" deposits mentioned in the contract, they are in total around 10k. Is it normal? should I be concerned about it?

3. If I sign the contract, and then find that there is something wrong with the house, for example during inspection they find some problem, or we find something we don't like (e.g. broken AC system, or broken heating system, or roof is bad) will I be able to cancel or change the contract? There is a notice with the contract saying that only attoney will be able to cancel it withing 3 days, and this point is very concerning, because I haven't find anything saying that I can cancel it myself.
Yes! Absolutely get a lawyer before you sign anything because it is quite clear you do not understand what the documents represent. To go into such detail about mortgage financing indicates that this may be not simply a purchase contract but possibly also a mortgage takeover or something similar especially in light of you saying it is a bank-owned property.
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Old 05-22-2018, 06:12 AM
 
Location: MID ATLANTIC
7,598 posts, read 17,618,792 times
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The foreclosure will add time to the completion of your transaction. NJ is an attorney state, as the others have said. It could be weeks for your offer to be considered and to receive an answer, due to being a FC. A foreclosure has many more considerations. Are the utilities turned on? If not, your home inspection could be missing some vital elements. Hopefully, you have an experienced Realtor, because the combination so far, FC & no attorney, screams experienced professionals needed.
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Old 05-22-2018, 03:24 PM
 
435 posts, read 464,004 times
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What happened to your agent? They are allowed to explain a contract that has been approved by the Broker/Lawyer accord in your particular County.
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Old 05-22-2018, 05:26 PM
 
Location: Rochester, WA
3,828 posts, read 2,050,555 times
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Quote:
Originally Posted by nuts2uiam View Post
You MUST and I Do mean Must get a REAL ESTATE attorney. Not a "I do it all attorney". Do you understand all the pitfalls and problems purchasing a foreclosure? You do know that it can take months and months for these to settle, right? Above all, I can't stress enough that you need a RE attorney.
Quote:
Originally Posted by SmartMoney View Post
The foreclosure will add time to the completion of your transaction. NJ is an attorney state, as the others have said. It could be weeks for your offer to be considered and to receive an answer, due to being a FC. A foreclosure has many more considerations. Are the utilities turned on? If not, your home inspection could be missing some vital elements. Hopefully, you have an experienced Realtor, because the combination so far, FC & no attorney, screams experienced professionals needed.
If a foreclosure is listed on the MLS for sale... - not a short sale - ... it shouldn't take any longer than any other sale. They're ready to go... They can close next week. Sometimes they reserve the first chance for owner occupants, but if none make a good offer in the first week, it's any qualified buyer.

The other pitfalls and risks you mention are real issues... but TIME shouldn't be.


Quote:
Originally Posted by kokonutty View Post
Yes! Absolutely get a lawyer before you sign anything because it is quite clear you do not understand what the documents represent. To go into such detail about mortgage financing indicates that this may be not simply a purchase contract but possibly also a mortgage takeover or something similar especially in light of you saying it is a bank-owned property.
Our standard forms ask what type of mortgage and how much down payment the buyer will be making. It's a very valid part of the seller's screening and decision.... foreclosure or not.
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Old 05-22-2018, 05:56 PM
 
Location: Cary, NC
31,594 posts, read 55,307,520 times
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Quote:
Originally Posted by Diana Holbrook View Post
If a foreclosure is listed on the MLS for sale... - not a short sale - ... it shouldn't take any longer than any other sale. They're ready to go... They can close next week. Sometimes they reserve the first chance for owner occupants, but if none make a good offer in the first week, it's any qualified buyer.

The other pitfalls and risks you mention are real issues... but TIME shouldn't be.




Our standard forms ask what type of mortgage and how much down payment the buyer will be making. It's a very valid part of the seller's screening and decision.... foreclosure or not.
We don't see very many short sales currently, but it is not my experience that many of them are far from ready to go.
The only standard we have in MLS is to notify buyers of the probable short sale status.
And, we have to notify the buyer/agent if an offer may push the transaction into short sale status.

Are your buyers bound by the financing representation they make in the Offer?
Or is it just a Good Faith entry at time of offer?
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Old 05-22-2018, 06:28 PM
 
Location: Rochester, WA
3,828 posts, read 2,050,555 times
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We're not seeing short sales any more either this year.... prices have climbed out of the hole they were in.

Buyers in our area are bound by the financing representation in the Financing Addendum. If they change it without agreement of the seller, the financing contingency would be considered waived.

There is a standard addendum for getting seller's permission to change loan type.
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