5 Things to Know About Buying New Orleans Foreclosures
Banks are no longer pricing at steep discounts
In fact, they are getting pretty darned good at listening to the advice of the agents they hire and pricing their properties at market value. What does this mean? The days of thinking you can go in with a really low ball offer just because it’s a foreclosure are going, going, gone.
You won’t get any information about the condition of the property
No one from the bank has ever lived in the property and they not required by law to make any disclosures as to the condition of the house.
Banks have additional terms added to the Louisiana purchase agreement
These terms will replace or supercede the standard language in our contracts. For example, they often add a per diem for every day the closing is extended if your lender can’t meet the contract deadlines. Considering the average cost to extend is $100 per day, it’s to be avoided whenever possible. That’s another reason to use a local lender!
In some cases, the bank may require the use of their own title company
In return, they will pay the owner’s title insurance premium, but not the cost of the lender required policy for financed purchases. Note: owner’s title insurance is a fraction of the cost of lender’s title insurance, so the bulk of those costs are still borne by the buyer.
Have your ducks in a row
If you’re going to make an offer on a foreclosed property, it’s important to already have your financial ducks in a row. Pre-approval letters are a requirement to even submit an offer. Additionally, banks often have tight deadlines for sending all of the executed documents with the deposit once they have accepted an offer. Writing that offer and then leaving town is not your best move when dealing with bank owned properties.