Selling Forclosures

Hey had an agent in yesterday who has an executed contract with a bank on a foreclosed property in Pembroke Pines. I recommend you giving your customers a heads up on what to expect when purchasing a foreclosure. These are not ordinary FAR9 transactions where each side is treated fairly. The lender wants their contract used, and guess who that favors? Your right, or an addendum their attorney prepared, and guess who that favors? You guessed right again. This addendum that I went thru was so long 8 pages, it restricted the buyer from alerting code enforcement to any violations should they be uncovered in the inspection. In this case none were found during inspections, at the end of the inspection period the title company which is located in Tampa, lenders choice of course, forwards all the code and permit violations on the property, having never disclosed these, I find it hard to believe they did not know.

Should your customer insist on purchasing a foreclosure I make several suggestions to you, 1 have their attorney review any and all addendums before signing, 2, provide the inspection letter to the customer and have them sign, which we will update to cover code and permit violations in the associate tools @ http://www.lyoncountry.com/.

Just a bit of info for you, I read some time ago that most lenders will not refi the foreclosed property for the new buyer. Why? Because foreclosed properties are 3 time more likely to be for closed on again. The reason given for this is the deferred maintenance is far greater than what meets the buyer’s eyes. Protect yourself and your customers out there guys. Use caution.