Foreclosure Information
INFORMATION REGARDING FORECLOSURES
- You must be pre-qualified prior to making an offer on a foreclosure property. You must submit a pre-qualification letter to your Morris Companies, LLC, Agent prior to contract preparation.
- When you have decided on a property, your TMC Agent will email you a Buyer's Information Form which to fill out and fax back. This form commits you to the purchase of the property.
- Our standard Purchase and Agreement contract will be sent overnight to you via FedEx along with a self-addressed return envelope. Some banks will allow your contract to be faxed however, some won't.
- We require $3,000 dollars as an earnest deposit and a check for that amount must be returned with the contract. Of course, this is your money and will be held in an escrow account and credited to the amount of funds you will need to close.
- If your offer is accepted, the bank generally has additional addendums they will require you to sign. The addendums will take precedence over the original contract language. Please read them carefully and discuss any questions with your TMC agent.
- All foreclosures are purchased AS-IS. That means the owner (bank, etc.) will NOT make any repairs prior to closing and will NOT be responsible for any damages or repairs discovered. Any repairs should be taken into consideration with your offer.
- We require that you have a third-party inspector conduct a thorough inspection of the home you are purchasing. However, the purchase of the home is NOT contingent upon an inspection. Remember, you are purchasing the home AS-IS. If the home inspection report notes something MAJOR, most of the banks will allow you to opt out of the purchase. Generally, you have 10 days to conduct a home inspection; therefore, your MPIR agent will request a separate check made payable to the home inspector as they do require payment in advance. Home Inspections typically cost around $250 and they are the buyer's expense.
- All lenders can NOT make loans on foreclosure properties in Tennessee. If you choose a lender other than our preferred lender, please make certain they 1) can close by the closing date noted of the contract as extensions are rarely given; 2) are able to lend money on properties that require repairs even though they are minor, most loan companies will require they be fixed prior to closing, and you will NOT be able to meet that requirement.
Our preferred lender is:
American Home Loan Center
Mr. Derek Berry
Telephone: 1-863-581-6603
- Our preferred lender will allow you to roll the cost of your repairs into the loan.
- How much should you offer? Your TMC Agent will have prepared a preliminary estimate for repairs, check comparable sales in the area to determine the true market value of the property, and determine how long the property has been on the market. With that information, the Agent can help you determine the amount of your offer.
However, our Nashville real estate market is very strong. It is rare to purchase a foreclosure 15% or greater below market. Good deals GO FAST; therefore you need to be ready to make your decision quickly as other people are looking at the same deal.
|
