As mentioned here earlier this week, the current foreclosure freezes by Bank of America and others have more than a few people in limbo as they wait to either buy or sell a foreclosed property. To help these folks out, Reuters has put together a list of helpful tips for weathering the freeze.
Among the bits of advice for those who are already in the process of purchasing a foreclosed property:
“Call the bank that owns the property and find out whether it has a clean title. Get a title search done. And do not even think about going to settlement without making sure that you are getting title insurance. If problems arise later, the title insurance company would most likely cover it.”
For those thinking of buying at a foreclosure auction, Reuters says to wait a bit:
“Don’t buy any real estate at auction right now… In the first place, you’ll have to pay cash, and it is unlikely to come back to you if problems arise. You can’t as easily ascertain whether the title is clean while you’re standing in front of the courthouse, either.”
And if you’ve just closed on a foreclosed property and are worried about losing your new home, they say that’s a “highly, highly unlikely scenario…. There aren’t very many precedents of foreclosures being overturned and it seems even less likely that a judge would throw out a homeowner who’s bought a property to put somebody back in who hadn’t been making payments anyway.”
For all the tips, check out the full article on Reuters.com