Flipping Foreclosures
Anyone had problems trying to flip foreclosures? I guess more specifically I'm wondering if there are different terms and conditions that I need to be aware of that might come up to bite me. Here's my plan. Please tell me what you think.
Foreclosure been vacant for over a year. Definitely needs work, but salvageable and could make someone a nice profit. The item is listed saying: Lender owned, sold AS IS no disclosures, no warranties, special addendums/conditions required. I was hoping to put an offer with a 2 week time frame contingent upon a house inspection. Once I get the offer accepted I search like mad for a rehabber who I could flip it to. If I don't find one then I say the house is in too bad of shape and I walk. Question. Is this doable, and secondly are there special conditions with foreclosures that might prevent me from walking away because it didn't "pass the inspection." Any additional thoughts would be greatly appreciated.
If you make an offer on an as is property and don't buy it you could lose your hand money if you show them proof of funds to close as would be needed in a cash deal. But if you have a pre-approval letter from a mtg broker, and the inspection comes back so bad you don't want the property. You could have the Broker give you a deniel letter based on the home inspection. This way you don't lose your hand money
[addsig]
Make sure, for clarity, that you understand the three phases of foreclosure properties, and when you are buying them
1. Preforeclosures (before auction)
2. Foreclosure (at auction)
3. REO (after auction, where bank bought property back at the auction)
If you know this, sorry, just making sure. REO stands for real estate owned.
I knew that, but mixed up the terms. Thanx for the clarity. It is definitely bank owned.