When purchasing a foreclosed property, you’re not actually buying from an individual. Because you’re buying a seized property that a previous owner wasn’t able to pay off, you’re not dealing with another individual in this transaction, but rather a bank or a mortgage lender. This is what makes this real estate transaction slightly different from the other – regular ones. What also makes this different is that it might be smart for you to have a legal representation and an agent by your side. If you wonder why is that the case, stick around, we’ll try to answer that for you.
1. They’re Familiar With The Process
Unless you’re in the business of dealing with foreclosed properties, we’re going to take a wild guess and say you’re probably not an expert in this field. However, there are people that are and you can hire them. Since you’re not negotiating with another individual, but rather a bank, it would be wise to have someone by your side that know the nuances and how this process unfolds. These negotiations can last quite some time and the bank is not necessarily keeping your best interest at heart, so having a lawyer to advise you through the process could be very beneficial for you.
2. They’re Here To Represent Your Interests
Just like any other seller, the bank’s interest here is to make as much money off of this deal as they possibly could. Not only that, they will do all in their power to set rules and conditions to protect their interests and shelter themselves from any responsibilities or liabilities. We’ll touch on contracts in just a little bit, but you can expect an extremely long contract that no ordinary person would bother reading, which is why you need a legal representative by your side. They’ll tackle those problems for you, explain to you what’s in the contract and based on your interest, advise you which action to take next.
3. They’ll Deal With The Contracts
Like we’ve said, in this case, you’re not negotiating with another individual, but you’ll still have to sign a binding legal contract. Whatever the deal is, the terms of it must be properly transferred into a contract so it becomes legally binding for both parties.
One could argue that you could do all of this yourself, which is true in a way, but you also could’ve done both of the previously mentioned things all by yourself, but it would be harder for you to do so. The fact of the matter is, lawyers, make the whole process a lot easier on you. They are familiar with state laws, they’re familiar with the process – all of the things you probably aren’t. They’ll negotiate on your behalf and they’ll represent your interests.
They will make sure that the contract is abiding all the state laws, they’ll review the contract for errors or glitches, make changes if some are needed and more. Additionally, if you hadn’t known, according to Friscia-Associates in most states both seller and buyer are allowed to review the contract within three days before it becomes legally binding. Minor details like this are why one should always seek legal help and representation in instances like these.
4. They’ll Help With Property Transfers
In situations like these, where one of the parties involved is a corporation or a partnership, or in this case a bank or a mortgage lender, the preparations and negotiations can be slightly more complicated than usual. Given the nature of foreclosed properties you can expect certain legal issues that need to be dealt with and unless you’re well-versed in it – a lawyer is your best bet on this one.
Transferring foreclosed properties from one party to another requires several different arrangements, all of which are mostly unknown to the general public. Attorneys on the other hand are more than familiar with them and they’ll make sure everything is done within the state laws and legal boundaries so you don’t have to worry yourself about it. Your legal representative will tackle all of these issues so that the only thing left for you will be to sign and become a homeowner.
5. They’ll Perform The Title Search
One of the most vital service attorneys offer in these kinds of real estate deals is what is known as a title search. The purpose of a title search is to check whether the property that’s up for sale is free from any burdens or problems – like liens for instance. In most cases, since you’re shopping for a foreclosed property, a title search isn’t, in fact, a necessity, however, you can never be sure enough, so a check-up is always a good thing. Once again, one could argue that you can do the title search all by yourself, but once again – lawyers will do it better and faster than we ever could.
6. They’ll Deal With Document Filings
Any kind of real estate deal needs to be filed, whether at a county or at the state level. Most of these processes can take some time to finalize, but the lawyers have their ways and methods, therefore, they can get this done far more quickly and efficiently than a regular person ever could.
Whether you’re purchasing a residential or commercial foreclosed property, you have to file all the necessary documents and finish the transfer or you could deal with an array of issues. For instance, failing to file all the necessary documentation for a commercial property, meaning the property you’ve purchased isn’t registered correctly at the state level, you might be forced to close down the shop. That’s just one of the many issues you could face if you fail to file correctly.
The bottom line is this, whenever you’re dealing with something monumental like purchasing a property, whether it’s a home, a building or a commercial property – having legal representation and taking legal advice is more than welcome.
There are so many rules and regulations in place, it would take too much time and effort to finalize a real estate transaction. An experienced attorney will protect your interests, give sound advice and make sure every aspect of the transaction is done in accordance with the law and regulations.