Foreclosures

What is a Foreclosure?

A foreclosure occurs when a buyer defaults. The defaulting borrower has lost all rights to the house and the bank has taken possession. The bank is now responsible for selling the property.

7 Considerations When Buying a Foreclosure

Virginia is not a “Right to Redemption” state.
The home is being sold “as-is” and “where-is.” Some structural issues and mold problems will be handled by REO banks.
Purchaser is responsible for turning utilities on and paying for utilities for a home inspection.
Some banks are exempt from paying state/ county/ city transfer fees and recording fees.
Use your own attorney, not the bank’s attorney, to close the deal!
Junior liens are wiped clean! This is an advantage for the Purchaser!
Your offer price should be on target with the market prices in the area.

Foreclosures are stressful transactions. They are not for the faint of heart. But, if you hang in there and are patient, you can get a really good deal on a great house.