Upcoming Foreclosures

I am purchasing a foreclosure from Fannie Mae, should I expect any additional expenses at closing?

I am just wondering if foreclosures bring any additional costs. I am not financing the property.

Public Comments

1. No, not from what I have seen, the Buyer has no additional expenses. I would have it inspected though, home and bug inspection. And if it's in the country I'd have the well and septice looked at also.
2. Yes, you will have some additional expenses that are disclosed in the addendum's that you sign. Ask the real estate agent for the details and if you are still unsure speak to the closing agent who handles the Fannie Mae closings. Fannie Mae has always been good to deal with in the past. I have been able to negotiate reductions in price and/or repairs. If you are going to occupy the home then you can get concessions from them that an investor may not. I recommend that you not deal directly with the Fannie Mae listing agent but rather with a buyer's agent to represent you. If you have already signed the contract to purchase it is probably too late, but if not you need someone with knowledge and experience in your corner. Fannie Mae will pay their commission.
3. Not directly. They are unable to provide any information that you would normally get from the owner of the house about condition- so I would pay a great deal of attention to the inspection- and hope for the best about any hidden conditions. Be sure that you are getting title insurance- you want to be absolutely sure that You will need to pay for part of the closing costs. This would have been the case in any sale. The items should be lined out in the contract and the title company (or escrow office) should be able to estimate that for you if you are not using a real estate agent.