Frequently Asked Questions About Buying a
Foreclosure
Answers to some common questions about foreclosure properties. Many of these FAQs are specific to
Fannie Mae properties.
Q: What extra paperwork is involved in purchasing a foreclosure property?
A: Most
foreclosure properties can be purchased in the same way as any other
property. The
banks or owners of the properties
often require a lengthy addendum to be added to the regular contract but
otherwise the process is much the same. Some foreclosure properties are sold
through online auctions but they are not listed on this site.
Q: What kind of condition are foreclosure properties in?
A: The condition of foreclosure properties varies greatly. Some are in excellent condition - others need a lot of work.
Q: Do I have to buy the property as is?
A: Most owners of foreclosure properties do not want to make a lot of repairs and adjust the price accordingly. However, there is still an inspection period during which time you can inspect the property and terminate the contract if the
inspection shows something detrimental. Complete home inspections are highly recommended when buying a foreclosure property as there is usually very little property history available.
Q: How long will it take to get an answer to my offer?
A: Often, offers are responded to the same day. Once the price and terms have been agreed upon and the addendum has been executed, signed contracts are normally received within about a week.
Q: I already have a lender but am interested in Express Path Financing?
A: Express Path Financing is a financing package specifically for Fannie Mae foreclosure properties. Properties are pre-approved and often do not need an
appraisal. Express Path Financing will not work with
mortgage brokers however so if you wish to pursue this financing, you will not be able to use your existing lender.
Q: Do I have to use Express Path Financing?
A: No. You are free to use whatever lender you like. Fannie Mae just offers Express Path Financing as a convenience.
Q: Should I be concerned that there are outstanding bills on the property?
A: No. All properties are sold with
Title Insurance which protects you against any outstanding liens against the property.