Foreclosure Dilemma and COVID

[Sharukh Ahsan]

Hi guys, some background info:

Under contract for a foreclosure for 780k, needs roughly 100k worth of renovations. Locked in 3.375% conventional renovation loan for 90 days. Closing scheduled for mid April. I was told the house had 15 offers.

Previous owner bought in 2004 for 860k (guessing before housing crash)

Now the house is having some issues regarding a clear title which may delay the closing up to 6 months. Meaning we have the right to cancel the deal.

The house is in a very affluent area of Long Island, NY (Manhasset Hills) with very few listings and multiple offers/bidding wars before the covid19 pandemic occurred. The average sales price in the area is usually 850k-1m+ (~2000 sqft split levels/high ranches going in this range, our house is a 2600 sqft colonial)

We are now confused if we should wait for the house to clear title or back out due to the potential wreckage covid19 may cause in the housing market. The neighborhood is composed majority of health and tech professionals so I don’t think the current state of the economy would force lay offs in these two sectors, although obviously I could be wrong. Neighborhood is also in the vicinity of corporate offices and hospitals of Long Island’s largest health care employer, Northwell Health.

This would be a house we would be planning to live in for a very long time if we go through with the purchase and renovate it.

Any advice is appreciated. Thanks!