One of my clients successfully closed on a foreclosed condo. Here are 12 points if you are looking to do the same.
1) Get prequalified for your loan or have a letter stating proof of funds and have it in hand. That letter has to be attached to your Offer to Purchase.
2) Earnest money will have to be in the form of a cashiers check. Make time to get to your bank.
3) Sign your name exactly and initial exactly where your Agent tells you to. She/he has a page of instructions.
4) Be prepared to sign that the Seller – Fannie Mae or Freddie Mac is responsible for nothing. You are soley the risk holder.
5) Let the ‘Seller’ choose the Title company – it will save you money. When it comes to closing you will then choose a local Title company to witness the signing of the documents.
6) You are a number at a Title company that is either on the east coast or in the south. You will be required to respond within 24 hours and then wait 2 weeks for a reply. This will continue.
7) Plan on 90 days from beginning to end. At least.
8) Errors will be returned. Delays will occur.
9) Dont’ knock your Agent. She/he is getting 4 different answers, from 4 different people and has asked the same question from each.
10.) Settle on a closing date that you can live with. If you are settled on a date and then have to change it all of the closing documents have to be changed. This will involve anyone who has touched your file for 90 days, then you can add in you, your mover, your landlord, your family, and your job.
11.) You will sign at the closing table prior to Fannie May and Freddie Mac – the Sellers. After you sign your package will be sent back to the Seller’s selected Title company for signatures.
12.) The local title company, your agent and your banker have pages of instructions to follow and everyone does the best they can to close the deal!
Last note! You will get the keys at the closing table and walk away with ownership. Whew.
