Bank Foreclosures PSA
Hello, I am purchasing 3 properties on one parcel that a bank foreclosed on: 2x SF homes and 1x duplex. We agreed on a great price for the area. However, the broker sent me a PSA used by the bank, and there are a lot of clauses that I am not used to seeing. Since this is a bank-foreclosed property, they are unwilling to negotiate on any terms of the PSA.
For example, the bank can terminate the contract at any time, for any reason, up to closing. I do not want to spend money on DD, only for the seller to back out right before closing.. This is my first time purchasing a foreclosure directly from a bank. Is this a normal clause in a bank foreclosed sale? Has anyone else experienced issues when purchasing properties after foreclosure?
Any advice would be greatly appreciated. Thank you!!
#1 All Forums Contributor
- Investor
- Virginia
Quote from @Austin Liebman:
Hello, I am purchasing 3 properties on one parcel that a bank foreclosed on: 2x SF homes and 1x duplex. We agreed on a great price for the area. However, the broker sent me a PSA used by the bank, and there are a lot of clauses that I am not used to seeing. Since this is a bank-foreclosed property, they are unwilling to negotiate on any terms of the PSA.
For example, the bank can terminate the contract at any time, for any reason, up to closing. I do not want to spend money on DD, only for the seller to back out right before closing.. This is my first time purchasing a foreclosure directly from a bank. Is this a normal clause in a bank foreclosed sale? Has anyone else experienced issues when purchasing properties after foreclosure?
Any advice would be greatly appreciated. Thank you!!
This is normal, and while you do not want to spend money the first thing I would do is get an attorney to review the contract.
Thank you, Chris!
