All Forum Posts by: Lauren Rose

I recently had my offer accepted on a bank owned foreclosure. The contracts were signed by myself and the seller (bank), so now I am starting the process of working with my bank for the mortgage. One of my friends is an attorney who said that he would waive the attorney fee and can do the title insurance on it.

We were just notified by the bank's property solutions company that "per the bank addendum, the seller will pay for the title insurance policy up to the sales price if the buyer uses their office for closing." Our bank said that it should save us about $4,000 in closing costs.

I sent that information to my friend (who is the attorney). He said that there is a clear conflict they have by doing the title insurance because they represent the seller.

Is that a huge problem? And I'm guessing we would have to pay the attorney's fee then if we go with the sellers company. How much does the attorney's fee usually cost?

Okay that makes sense, thank you for clarifying! @Greg H.

Thanks for your responses, it is very helpful! I am almost certain that it wasn't an FHA or VA loan. The reason why I say that is because the woman who previously owned the house was foreclosed on owned many local businesses and got in trouble for taxes, so she handed the house over to the bank. She was divorced and I know this wasn't her first house. So that is why I am guessing that it couldn't be either of those types of loans (I don't have a lot of experience with this stuff so I may be wrong).

So, would it make a difference if it was a conventional loan?

@Cara Lonsdale, thanks for your response, that's very helpful! So you mentioned that "if it is an FHA backed property, they have the option of giving it to HUD, VA to the VA, etc. They can sell it as an REO, either online through an auction, or listed with a local Realtor. They can enter it into an owner occupied homebuying assistance program, and get whatever tax break."

So since it is an REO listed with a local realty agency, is it likely that they can take it off and sell it as one of the options that you listed?

Hello,

I put an offer in on a Chase bank owned foreclosure 2 weeks ago (the first day that they would accept offers). We were supposed to hear back within 48-72 hours, but we didn't. We kept our offer in and our realtor has been talking to the listing realtor and found out that they're "checking title issues."

Does anyone have any experience with this and have any idea how long this can take? They said we are the only offer right now. Also, the realtor said that this won't affect the asking price of the house.

The bank "bought" the house back in 2015. Shouldn't the liens have been cleared when they bought it back?

@Christopher Phillips

Thanks for your response! This would be a house that I would live in. From what I am reading, it sounds like there really is no straight answer.

The house has been abandoned for 4 years. It’s a lot of cosmetic work, however there is water damage in 2 rooms, with one of them showing signs of mold. We also found a pipe that is leaking.

We aren’t going to be doing an inspection, so the only contingicy is the mortgage.

I guess we will just have to wait and see what the bank says.

There is a Chase owned REO that was just listed a week ago that I am extremely interested in. We had 2 showings this past week and put an offer in today (it was the first day that they would take offers). Our realtor put in the offer for us to have a response for Monday. The listing realtor said that there were 3 other showings in the past week.

The house is listed at $290,000 and we offered $270,000. We will be taking a conventional loan and also put that we can close in 30 days. Do you think this is a reasonable offer? Does anyone have an experience buying an REO from Chase?

Hello,

I was looking to learn a little bit more about short sales. I am looking to buy my first home. One of my friends houses is going to be getting foreclosed on. The house was appraised at $350,000. She owes $190,000 on her mortgage and has a $100,000 home equity loan. 

Can you buy the house through a short sale for less than the debts that she has on the house? How would a short sale process work?

I am going to be a first time homebuyer and have been looking at houses. There is a house up the road from my parents house that has been foreclosed and abandoned for over 7 years now. The property is listed on Zillow as a foreclosure but "not for sale." We went to the property yesterday to see if we can find more information on it. The two white foreclosure papers are in the window and I was told that they usually have the contact information on them. The window was way too high to get that number. There were other papers posted in another window that were "affidavit of trust deed." I was told that means that the person signed the house over to the bank. We are really interested in this property because the house isn't trashed by the previous owners and I'm guessing it's because they handed it over to the bank instead of getting forced out. On those deed papers, we found that it is now owned by JP Morgan Chase bank. We researched this even more and saw that the house was sold in June 2015 to the bank for $3,300. Zillow estimates that the house is worth $322,000. I found on the county's sheriff sale website that the debts that the previous owner had on the house was $528,000. The house is definitely not worth that much cause there definitely are damages seen from sitting for 7+ years. Will the bank even sell the house for less than the debt owed on the house?

My boyfriend called the bank today and they said that they don't have any information on it. Is there any advice as to how we can somehow find more information on it?