This Sulphur LA home for sale was a Fannie Mae Foreclosure. The Contract was written in February and we just closed on May 16th! Why do foreclosures take so long to close and what can Buyers expect?
When you are buying a foreclosure the human touch is basically removed from the process. You are dealing with a lending machine (the bank)
When the Buyer makes an offer the Bank will require the Buyer to complete their own 30 page Bank Addendum. Buyers need to be patient and not be in a hurry to close. The bank will be using their own Title company and prior to closing will have to review the HUD settlement 72 hours in advance.
Banks have a system in place when they list foreclosures for sale.
- The property will always convey in AS IS condition.
- Purchase will usually convey via special warranty deed with no title policy
- Seller chooses closing attorney/title company
- Seller will make no repairs
Your timelines mean very little to the bank. Their timelines mean everything. You could sit and wait for a response from the bank forever, but once they respond then you are on the clock to perform.
This Sulphur home looks to be in pretty good condition and had a stove which most foreclosures don’t always convey with.
During the Buyer’s inspection it was discovered that there were plumbing issues. The problems stemmed from the house being closed up for a length of time so the gaskets had crumbled with most of the plumbing seals.
The Buyer’s were patient and will make the repairs on their own now that they have closed on this Sulphur home 3 months later and endured Title problems and playing by the bank’s rules.
Foreclosures are not always easy and can be risky if a Buyer is obtaining financing. If you are patient and don’t need to move in right away or make major repairs, then a foreclosure home may be worth your time. That just depends on the Buyer. By the time you get to the closing table you will feel like shouting hooray we made it!