Need advice on purchasing property in foreclosure

What is the name of your state? MD

I recently put a contract on a home in Baltimore Co. The contract was accepted by the seller. During a title search, it was discovered that the house is being foreclosed on (the foreclosure is to be completed on May 25th- we wondered why the seller wanted to settle quick!) Strangely enough the closing date is also set for May 25th. I would like to know whether the house being in foreclosure can affect the closing. I imagine that the lender/bank want their $ and therefore wants the property sold. Is there anything I can/should do that would help bring this sale to a "happy end".

thanks in advance

[HomeGuru]

Originally Posted by kmiska

What is the name of your state? MD

I recently put a contract on a home in Baltimore Co. The contract was accepted by the seller. During a title search, it was discovered that the house is being foreclosed on (the foreclosure is to be completed on May 25th- we wondered why the seller wanted to settle quick!)

**A: what exactly do you mean "the closing will be completed?"
*********

Strangely enough the closing date is also set for May 25th. I would like to know whether the house being in foreclosure can affect the closing.

**A: yes, it can.
*******
I imagine that the lender/bank want their $ and therefore wants the property sold. Is there anything I can/should do that would help bring this sale to a "happy end".

thanks in advance

**A: contact the lender right away and make sure they are aware of your contract and are willing to stay the foreclosure action until your closing date.
They need a copy of your contract together with your final loan committment.

thanks for the advice!

I was told that the house will be foreclosed on the May 25th. The way it was explained to me is that the lender has begun the foreclosure proceedings and was planning on taking over the property on the above date. Since I've never dealt with foreclosures before (thankfully!) I'm a bit fuzzy about how this process is done (as is obvious from my post).

We will definitely contact the lender and see if we can get a stay on the foreclosure. What do you think is the best way on obtaining the lender's information (I was going to contact the title company).

We are also going to buy the title insurance (at this point what is an extra few hundred dollars The other thing we're doing is trying to get our agent to schedule a closing date a few days before the foreclosure.

again, thanks for the valuable advice
kate

[HomeGuru]

Originally Posted by kmiska

thanks for the advice!

I was told that the house will be foreclosed on the May 25th. The way it was explained to me is that the lender has begun the foreclosure proceedings and was planning on taking over the property on the above date. Since I've never dealt with foreclosures before (thankfully!) I'm a bit fuzzy about how this process is done (as is obvious from my post).

**A: then hire a real estate attorney or read books available on the subject.
*********

We will definitely contact the lender and see if we can get a stay on the foreclosure. What do you think is the best way on obtaining the lender's information (I was going to contact the title company).

**A: that would work.
********

We are also going to buy the title insurance (at this point what is an extra few hundred dollars The other thing we're doing is trying to get our agent to schedule a closing date a few days before the foreclosure.

again, thanks for the valuable advice
kate

**A: you have an agent? Why then is your agent not advising you as to the foreclosure procedure?

I feel much better after today.
I'm actually pretty impressed with my agent and the title company. Everyone I've been working with returned my calls very promptly. They have negatioted a new closing date for us (21st of this month). The attorneys which represent the lender were given a copy of our contract and and the loan commitment paperwork. They are indeed very interested in making this deal go through. We found out the seller's outstanding balance (which is thankfully well below the price of the home). Now I will just keep my fingers crossed and hope the appraisal went well (although it seems like in this area of MD, a straw shack can appraise for more than $100,000).

Maybe I'll even come out of this without having to read a book on real estate law....although I'm sure that would be a real treat.
kate

[HomeGuru]

Good luck to you.

since I have nothing to do for the while being i thought i would post an update on our prospective home...
we locked in on our interest rate today (yay). The lender was giving us the run-around a bit, about a student loan that I co-signed for my husband. We had to get letters from sallie mae (saying the loan was deferred till next year), letters from georgetown (saying my husband is a full-time student)...etc etc. They somehow thought that this was not enough info, and I put my foot down and said "no more, what you have is sufficient".....the mortgage broker called me back this morning and said that the lender has indeed decided that the documents provided are sufficient. One small victory for me...
I've also heard that the seller has actually started to clear out his "detritus" from the abode...this is significant since I thought he would surely stuff us with his crap.
So we are to close exactly in a week, I still don't have an appraisal but the mortgage broker says that it should appraise fine (I mean what the heck if it appraises lower, we'll just pay a lower price, since the seller is kinda between a rock and a foreclosure)

[HomeGuru]

Ok. let us know after it closes.

I'm happy to report that we closed on our house today. The seller even managed to clear all his crap out of the house. Everything went well, except that my lender was quite late in mailing the papers to the title company...therefore the closing took three hours...it was a long day.

now the real work starts- gotta paint and refinish the floors....

thanks again for the advice
-kate

[HomeGuru]

Wow Kate, congratulations. When is the party?

Thanks! The party begins tomorrow!

you can check out this "jewel of a home" at our site:

[url]http://homepage.mac.com/nilepoc/PhotoAlbum24.html[/url]

Yes, it's a fixer upper but it's cute. It is kind of scary though that this is what $160,000 buys one in Baltimore Co. It's definitely not midwest prices! But golly gosh darn it it's all ours- well the bank's really

[HomeGuru]

[quote=kmiska]Thanks! The party begins tomorrow!

you can check out this "jewel of a home" at our site:

**A: thanks for sharing, and I have 2 questions.
1- does the range/oven in the kitchen have an anti-tip bracket?
2- in the 2nd basement photo, whose female butt is that?

Answer to question 1:
I don't believe that an anti-tip bracket is in place....althought the porch/kitchen does tilt a wee bit....also two burners are missing.

answer to questions 2:
that is my fat butt in the picture, it's really quite shocking

I spent the whole weekend preparing for the painting party, and ripping off moulding...fun fun fun

[HomeGuru]

Thanks. Did you get a home inspection?

Yup, sure did...