#1 Foreclosures are in horrible condition
This is not always true. Keep in mind, it is not one place letting all the foreclosures out. Their are multiple entities selling foreclosures. Some banks/lenders have found that fixing the property up helps them to lose less money by making the home attractive to more buyers. On the other hand there are entities that will not invest a nickle in the house and sell them as is. We are starting to see more homes fixed up prior to sale because most entities have figured out that is the fastest way to get higher offers and help move the market in an upward direction.
#2 You cannot ask for a closing cost credit on a foreclosure
Yes you can! I see more closing costs credits on foreclosures then I do on any other type of sale. If it is a multiple offer situation the likelihood is lower that the seller will pay closing costs but if it is not a multiple offer situation you have a great chance. Some foreclosures even run specials. Twice in 2010 Fannie Mae foreclosures offered 3.5% towards closing costs on any owner occupied purchases.
Bottom Line: If you need closing costs ask for them. If you cannot get them and still need them, check out our CHF Platinum program. It is a grant that will cover 3% of your closing costs if you are doing a FHA,VA or USDA loan.
#3 If my lender cannot close on time my agent says I can get an extension
Never count on an extension. Contracts have dates for reasons and the majority of the asset managers expect you to stick to them. Even if you are signing your loan docs the day the contract expires they may not extend the contract. Some asset managers see only black and white. Don’t lose your deposit and dream home because you were looking at things in grey. Make sure that both you and your lender can accomplish the task on time upfront.
