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Our area does indeed have foreclosure
activity going on, but, we haven’t seen as
much as other surrounding towns like
Brockton, Springfield, etc. We are seeing
more Short Sales however which can often
be pre-foreclosure status sales rather than
actual bank owned sales.
So you appreciate the difference, a bank
takes back a property by a tangled legal
process involving an auction of the
property. Or a bank may reacquire a
property by virtue of a Deed in Lieu of
Foreclosure which is akin to turning the
keys over to the bank.
Once the bank takes possession, the asset
gets transferred to their REO Division who
in turn usually out sources the property
sales and management duties to an asset
management company. Many of the asset
management companies out there are
internet companies that cropped in the last
few years and aren’t terribly experienced.
These asset management companies then
hire local Realtors that have experience
with working with foreclosures and that is
how the property becomes available for
sale to you.
Foreclosure properties are harder to buy
due to a range to reasons. Among them is
that they are often winterized which makes
inspections difficult. The bank has no
knowledge about the property so there is
little guidance available from the seller.
The protocols often used in buying and
selling real estate in MA are modified. For
instance most banks will only accept
successful offers verbally which of course
isn’t valid in MA. They prefer to go directly
to P & S and will usually require that
buyers sign the contracts without any
changes within 48-72 hours from receipt.
So often times buyers of bank owned
homes don’t utilize legal counsel because
there are no changes allowed to the
contracts anyway.
Buying a short sale or bank owned
property can be trying which is why you
need someone on your side that
had seen it all when it comes to
foreclosures.
We have been helping clients get good
deals on bank owned property because we
know how the banks work, how they tick,
what motivates asset managers, when price
reductions are likely and a lot more. If you
are in the market for a bank owned deal, give us a call. 508 341-5630
We feature some of the better foreclosure deals we are seeing at:
Foreclosure Deals MA.com
This is a website we created to showcase
the better bank owned deals we come
across. There is no sign up, no fee, and
no obligation-check it out today.
Call us for more info about bank owned homes in Worcester County, Boston Metrowest and surrounding areas
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Foreclosure Pitfalls:
Most banks will not due
Title V inspections even
though it has become
customary over the
years for the seller to
provide the test results
to the buyer. This means
you could add another
450 +- to the cost of a home inspection.
Banks do have to pay
back taxes, back due
condo fees, municipal
water & sewer charges.
Banks typically don’t
make any repairs for
items that are discovered
in a home inspection.
You can void the deal
but don’t expect any
action by the bank.
Asset managers of bigger
national companies often
handle multiple states
and may only work MA
bank owned assets one
day a week so expect to
wait 3-5 days for a
response to an Offer to
Purchase.
Cash buyers often have
to provide a bank
statement as proof of
funds for a purchase. If
you make an offer
indicating a cash sale
when you are really
going to finance a
portion of the price, the
bank will go ahead and
void the deal and seek to
keep your deposit as
liquidated damages.
Bank owned buyers have
not been able to assign
purchase rights since the
mid 1990’s.
Require that the title
search be a full 50 year
search not just an update
from the last conveyance
as most banks try to do
to save money.
You may have to pay the
bank to re-winterize a
property if they agree to
de-winterize for home
inspections.
Call us-we are the pros
when it comes to bank
owned deals in our area.
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Bob Marquedant
Hopkinton
Realtor
O 508 435-4009
M 508 341-5630
F 508 435-9257
BobMarquedant
@Comcast.net
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