I’m thinking about buying a foreclosed home. Are there any special items to consider?

Yes there are special items to consider; buying a foreclosed home is much different than the typical home purchase.

Here are some things to keep in mind:

The utilities must be turned on and in working order prior to the lender issuing a mortgage approval.
Unlike other home purchases, sellers of foreclosed properties are not required to provide you any disclosures in relation to the condition of the property.
Because of the aforementioned lack of disclosures, it is in your best interest to hire a certified inspector who can provide you with a full inspection and notify you of any repairs that may be needed on the property. Without an inspection, you won’t be able to estimate the cost for repairs.
If there are repairs needed, you can negotiate a sellers concession to allow for these items. Depending on their extent, these repairs may be approved for completion after closing.
Another item to keep in mind is that some sellers will charge you a daily fee if you do not close by the expected settlement date.
Make sure that your earnest money deposit is refundable if the purchase does not go through. (Property auctions typically require a non-refundable deposit.)

Please call one of our loan experts for additional consultation at 248-849-9453.