Foreclosure house purchasing (disclosure, auctions, sale, accepted)

[MyCD999]

- What are the steps involved buying house from foreclosure?
- how long does it take?
- what risks involved?

[Rabrrita]

Originally Posted by Jim.H.

- What are the steps involved buying house from foreclosure?
- how long does it take?
- what risks involved?

Depends on how they are selling it. It’s like any other house purchase if the bank is selling it through a real estate company. If they put it up for auction, it’s like any other house in an auction. So, the steps are what steps are in place for the way it’s being sold.

It may not be as fast when they are selling it on the open market because they are not personally involved so it’s a bureaucracy. There have also been times when departments within the bank that have to sign off on the sale get all disoriented and months later, your still waiting. Auctions are auctions and at close of auction, they usually process the paperwork.

Risk are the house can have all sorts of hidden everything and because the bank is just the bank, they have no idea what’s going on with the house. You have to invest a bit more in your due diligence on a foreclosure because the disclosure statements aren’t worth the cost of the paper they are printed on.

That’s just my experience

[MyCD999]

Thank you for the information.

[WorldKlas]

you have to buy as is, usually, so expect lots of deferred maintenance and a reduced price for that reason

[1insider]

Also, in many cases you may get either a quit claim deed or a special warranty deed instead of a warranty deed. Neither of the first two guarantees clear title. Do your own title search before plunking down the money.

[Brian_M]

Originally Posted by Jim.H.

- What are the steps involved buying house from foreclosure?
- how long does it take?
- what risks involved?

In all 3 cases, "it depends"

Having just bought one myself, there was Zero difference in buying vs the 3 others "normal" purchases I've done. It took longer though, and the risks (as in risks that *I* saw/accepted) were the exact same.

But each house has the potential to be different.

The term "Foreclosure" can mean a lot of different things (bank owned normal sale, bank owned auction, gov owned normal sale, etc...) Each bank will have their own requirements, just as the 2 major Gov entities have different requirements. You Really have to be specific to get specific answers.

Time involved could be days (court house auction) up to months. Again, depends on what Type of foreclosure.

And risk also depends on the Type of foreclosure. Some have only the risks you would associate with a traditional sale, some have much more.

This is one situation where you need to do your own homework, and on each individual property. Don't know how to do your own homework/dig through the information that's out there, then higher a real estate attorney/lawyer to assist you (it's not that expensive, and especially in light of what it could save you in the long run).