Frequently Asked Questions
Below find 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: