SOUTHFIELD (WWJ) – The foreclosure rate in Metro Detroit has been frightening. Home prices, plummeting for the last five years.
There are houses in the suburbs going for as little as $6,000 — seemingly the deal of a lifetime.
Should you take the plunge on one of these properties?
Buying a bank-owned house could end up being a very drawn out, and expensive “bargain” says Coldwell Banker Weir Manuel CEO Kelly Sweeney. Sweeney tells WWJ, there are three major problems with purchasing one of these properties.
#1. If you’re buying a bank owned property you’re going to be using a bank purchase agreement, (as opposed to a standard real estate board purchase agreement) and the terms and conditions are heavily slanted in favor of the bank.
#2. Sweeney says there is a huge degree of uncertainty about whether you’re going to be able to close on the property, when you’re going to close, or IF you’ll even get it. Sweeney says in some instances, banks are pulling out the rug from under buyers at the last minute because they have a better offer.
#3. Title insurance. He says many banks are not offering title insurance for sellers to insure marketable title to the buyer. Sweeney says he’s advising buyers of foreclosed properties to get their own title insurance.
Sweeney is going to be the featured speaker Wednesday on a special CBSDetroit.com “webinar” at noon on Wednesday.
He’ll be talking about current trends in the local real estate market, hot properties, tips for sellers and buyers, and advice for people who want snap up housing bargains and become landlords.
For more information and to register, visit this link.