Buying Metro Detroit foreclosures Part 1

How to Buy Metro Detroit foreclosures better!

Buying Michigan bank foreclosures are a little different than buying a home from a individual home owner.  Here are some of the ways banks are different from individual home owners.

  • Banks sometimes have a third party that does the negotiating for them
  • Banks are not going to fix anything that needs repair
  • Banks have special addendums that protect them the bank for being sued
  • Those addendums can not be changed in any way, if you don’t sign them you don’t buy the house.
  • In those addendums there usually is a per diem fee.    What that means is if you go past the closing date you may have to pay up to $50 -$200 a day for every day you don’t close.
  • Banks do not have fill out sellers disclosures because they have not lived in the property so you have no idea of what the house’s possible problems are.
  • Banks are selling the house “as is”
  • When you buy the house you still can have the house inspected but your two choices are back out or accept the house as is.  Most banks won’t renegotiate the price.
  • Banks may immediately respond to your offer, or it may be a month before you get a signed purchase agreement from the bank
  • Until you get a signed agreement you don’t have a true deal.  A real estate transaction in Michigan is not binding until is signed by both parties and is in writing.
  • You are usually responsible for turning the utilities on to get the house inspected.  You have to put them in your name.
  • Your earnest money deposit will usually be held by the listing agent.  If something goes wrong it will be much harder to get your earnest money back.

There are lots of great metro Detroit foreclosure deals but I have listed many of the ways foreclosures are different from “regular” home purchases.  It is worth buying a foreclosure and going through the additional issues if you find a Metro Detroit foreclosed home that is bargain priced for the condition it is in.

That is the key.  Is the foreclosed home bargain priced for it’s condition?

Keep coming back to read more about buying Metro Detroit foreclosuresand how to get the best deal.

Russ Ravary your Metro Detroit foreclosure specialist

 

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