Foreclosure investing

[Chris Severin]

Ok so I find a foreclosure deal...what happens next? I've heard that the asset managers can be a huge obstacle in moving forward with the process. Let's say that it takes 2 months to get to the closing table from when you first inquire about the property and everything else is cleared...Will the closing attorneys allow you to put that date on the papers or will they require you to put the actual closing date?

[Christopher Brainard]

@Chris Severin

While your question doesn't make a lot of sense, I'll try to explain the process briefly. 

Generally speaking, buying a foreclosure from a bank is no different than buying from a retail seller, except that the bank selling the property (the asset manager in particular) isn't necessarily motivated to make the transaction smooth or timely. 

I'm currently purchasing a REO from the bank when they were insisting that the deal close on December 21. I got everything ready to go on my side but we are still waiting for them to produce the necessary documentation to close. We got an extension to the 29th, but I'd bet you a cold beer that we won't be closing tomorrow. Now, the million dollar question is, after the first of the year, will the bank have any urgency what so ever to push this deal forward to get it off their books? Probably not - but that's part of the game.

To answer your second question, the closing date is the closing date and you will often need to sign an addendum to the contract to push that date out to meet the asset manager's schedule.

-Christopher