Buying distressed Ann Arbor Area real estate listings is not for the faint of heart. Navigating through the minefield of a short sale or foreclosure takes time and dedication to cherry pick the deals.
RealtyTrac recently reported that approximately 25 percent of all US transactions in 2010 involved distressed properties. Bank-owned (REO) and short-sale transactions will continue to be a major part of the real estate experience this year. The foreclosure filings for Washtenaw County were up 17 percent in 2010. The last time I looked at our Ann Arbor Board of Realtors data, our distressed market comprised 21 percent. We await all the 2010 sales data to be reported and finalized.
1. Is your agent trained to handle this business?
How many closed bank owned or short sales has the agent closed; ask for referrals. Selling distressed properties needs skill and dedication. This means the difference between getting a house or not. This means saving thousands of dollars in negotiating or not.
2. Have an attorney review all bank addendums
Many lenders have incorporated language in their contracts that calls for a “blanket indemnification of the lender.” You forfeit your rights, so it is critical that an attorney review all bank documents and indemnification language.
3. Knowing How to Winterize, and Un Winterize and Access Utilities
If the utilities are on, assure in the contract that they will remain on for inspections and the house is un winterized for the inspector. Likewise, the buyer may have to pay DTE a turn on charge to get utitilies on.
4. Know How to Save Money and Protect Yourself
Make sure contract language states that all contingencies will start when upon receiving signed bank documents.
Protect yourself by choosing experienced agents like our buyer’s agents who have been maneuvering through these Ann Arbor Real Estate transactions since 2006. There are other pitfalls in buying distressed property, look for the Ann Arbor Real Estate experts to guide you. Find the best foreclosures in Washtenaw County with Google Street View.
Written by Kathy Toth - Visit Website
