Are there any catches to buying a house that is in forclosure status?

Answer 1

There are a few that you should be on the look out for. Make sure you have enough time to close prior to the foreclosure actually occurring.

Also make sure you have a creditable escrow and title company to assist you with the transaction. These companies will make or break your deal.

They have all the legal technology and know how to make sure your deal close properly and is done according to your state laws.

Make sure you have a good strong tested contract or use a common real estate purchase contract.

You want to insure that the final purchase price is right subtracting any found and known repairs to the property.

Make a decision as to if you want to keep the property as your personal residence or a rental or are you planning to sell the property as a flip. The decision you make as to what you plan to do with the property will go into the way you make your decision about the purchase price.

I hope this has been of some use to you, good luck.

"FIGHT ON"

Answer 2

Usually, time is of the essence in a foreclosure situation. I normally involve the lender that is foreclosing and communicate with them as best I can. I have had a few cases when the lender would not authorize a sale and just foreclosed on the home. Thats not so common in this market.

Normally though, if the foreclosing lender is cooperative and if you can work fast, you can get it done without a hitch. Be sure to inspect the house closely and remember to have a plan if you want to flip it or use it as a rental. Be sure to check the laws in your state, they may vary.

Hope this helps.