As with any kind of business, but especially in real estate, there are plenty potential pot holes that you can fall into if you are not aware of them. The most important part of buying a foreclosure property is ensuring free and clear title. But there are other things too, and I was really impressed when I saw this article going over a few “gotchas” that are common when buying foreclosure properties.
Here’s one of them:
Q: What issues do you see crop up on a regular basis with REO transactions – delays, etc. – that buyers should be aware of?
A: The Circuit Court may re-examine the filed documents for bad signatures, robo-signing etc. Failure to give proper notice to subordinate lien holders requires the trustee to get waivers of notice or some other resolution of the problem. Before the closing for the new buyer can conclude, the REO bank must approve the HUD-1 being used and sometimes there is a delay in getting this approval.
You can read the full story by clicking on this link.