Understanding A Foreclosure | Northshorist Real Estate Group | Blog

What does this mean? ? A guide to the industry lingo

A foreclosure can be an exciting opportunity and a overwhelming experience all at once. Some foreclosure property descriptions are so filled with industry language that it can be intimidating. What are good faith monies? What does it mean when they say there can be no changes to the P&S and sellers addendum? Here are a few explanations to at least get you past the description.

Much of the time you will see a foreclosure listed ?as is.? This is to indicate that the bank will put no further money into the betterment of the property. The cost of any repairs will be passed onto the buyer. This can lead to problems with getting a mortgage but, depending on the situation, creative financing options like a renovation loan might overcome such obstacles.

In big, capitalized letters you might run across a multiple offer deadline warning. Typically this will be because at least one offer has been submitted and they want to collect all others during the review period. If you are submitting during a multiple offer situation its not uncommon to have a disclosure to sign that acknowledges you are aware there is more than one offer. You?ll want to go in with your highest and best from the start.

You might see something that reads: ?The acceptance of good faith monies in escrow without an executed sales agreement does not bind the seller.? Good faith monies are the buyer?s deposits. In a typical real estate transaction there are two deposits before you get to closing. Escrow is the type of bank account that the escrow agent will open to hold these deposits. What they are saying with this statement is that holding the initial deposits does not bind the bank to go through with the transaction until a purchase and sales contract is signed.

Speaking of the purchase and sales you might also see something along the lines of ?no changes to the P&S or seller?s addendum.? P&S is the shorthand for purchase and sales. An addendum is something added by an attorney to clarify the contract. Typically a P&S is reviewed by all attorneys involved to make sure their clients interests are protected. Sometimes agreed upon changes are made as the attorneys negotiate with one another. This statement bars that from happening although a buyer?s addendum is still sometimes allowed. Even if changes are not allowed an attorney should still be retained to review the contact.

All that said, foreclosures can be a great investment. As of January 2012 foreclosured properties sold at 71% of their fair market value (per Lender Processing Services). If you are interesting in foreclosures you can contact us directly for assistance or search through our website here.

We are Essex County real estate specialists centered in Beverly. Our group has over thirty-five years of collective experience in Massachusetts property. If you would like to schedule a buyer or seller consultation please feel free to call our office at (978) 524-8725 or leave us a message here.

The Northshorist Group offers so much more than just real estate expertise. We spend the time to learn about expectations and lifestyle. Combining that with a strong focus on the buyer or seller?s best interest creates an incomparable experience. Most importantly we are longtime residents of, and love, the North Shore. Click to browse waterfront properties, luxury homes, foreclosures, short sales, multi-families, or make your own search.

Source: http://blog.northshorist.com/2012/09/06/understanding-a-foreclosure/

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