8 Things You Should Know About Buying Foreclosure Homes

If you are planning on buying an foreclosure home it is imperative that you work with an Realtor that is well versed with foreclosure transactions. Each bank has their own set of guidelines and many to not acknowledge the Arizona Real Estate Purchase Contract so the more experienced your Realtor is with the various banks (and their addendums) the better it is for you.

*If you allow Aunt Sally who happens to have an active and rarely used real estate license represent you in your foreclosure transaction –please advise you do so at your own risk.  Caveat emptor

That said, below are 8 items of interest that are standard for all Arizona foreclosure transactions, similar for other states…

1. List prices are negotiable but the banks will NOT entertain ‘low-ball’ offers
2. You will not receive Seller Property Disclosure Statements aka SPDS
3. You will not receive a 5 year claim history aka CLUE Report
4. You will not receive any warranties on the property
5. The bank will pay for your owners title policy if you use their preferred title/escrow company
6. There will be a per diem charged in most cases if you do not close escrow on time
7. You will have the opportunity for a full 7-10 day inspection period at which time you can cancel if you uncover things about the property you do not like
8. A typical Arizona foreclosure transaction currently lasts 45 days or less (unless it is a cash offer)

For more information on the process of buying Arizona foreclosures homes contact Sarah Reiter with RE/MAX

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