Virginia Kail's Cookeville TN Real Estate Blog

Buying a Cookeville Foreclosure - Things you Should Know.

By now everyone has heard about what a great deal you can get on a foreclosure.  That's definitely true, but there's a lot you should know before you decide to buy a one.  Buying a foreclosure is not like buying a regular house; it's another animal entirely.  As a Cookeville foreclosure expert, I've seen some bizarre things! I've also seen people get a house with some impressive built in equity. You just have to know what you are doing, and proceed with caution.

1. Every bank is different. They all have different requirements and different marketing strategies. Some banks take bids for so many days; while others list the property just like a regular house. Some banks will not let investors bid for the first 15 days. 

2. All banks require that you sign their addendums. The bank addendum supersedes anything in the original contract.  It's not fair, but if you want to buy a house at a bargain, it's part of the price you pay. Read this form carefully, and make sure you can live with the terms.

3. All banks require a pre-qualification letter. This is not optional. The bank will not even look at an offer from you unless a pre-qualification letter is attached.  Banks often differ on how the letter must be worded, and some banks even require that you pre-qualify through them before bidding. Cash buyers must show proof of funds to submit an offer.

4. Almost all foreclosures are sold as is.  Does that mean you can't have a home inspection?  Not at all.  In fact, I strongly recommend that you do have a home inspection.  If the home inspection reveals a defect that you can't live with, then you can cancel the contract.  You can't ask the bank to make repairs. (Well, you could...but they would say No.)

5. During the winter, foreclosures are winterized.  If you plan to have a home inspection, it will be your responsibility to pay a plumber to de-winterize the home for inspection, and then re-winterize afterward. You may also be required to have the water put in your name for the inspection. This varies by bank. Some banks require the listing agent to turn the water on, others don't.

6. It's not a bad idea to have a survey.  Foreclosures can sometimes have easement issues. In fact, most of the easement issues I've seen have been on foreclosures.

7. You must close on time.  Banks do not like delays in closing, and many charge $50-$100 per day for every day that closing is delayed.  This is where it becomes crucial to have a really good real estate agent, and a really good loan officer.

8. At the closing table, the attorney will ask if you want title insurance. If you are buying a foreclosure, I encourage you to buy the title insurance.

9. Work with an agent experienced in helping people buy foreclosures.  I know that new agents have to start somewhere, but a foreclosure isn't it. This is one deal that you want handled by someone who knows and understands the process.

These are just some of the basics you need to know about buying a Cookeville foreclosure. There is currently a large selection of foreclosures for sale in the Upper Cumberland region of Tennessee. If you would like to buy a foreclosure in the area, contact me for a free foreclosure list. I service the following counties: Putnam, Overton, White, and Jackson.