Upcoming Foreclosures

In the process of purchasing a home that is pre foreclosure in NJ and need advice...?

In March we agreed to a purchase amount based on seller saying she could not accept any less to avoid short sale. Apparently the agreed amount still was not enough and it has been in the hands of the sellers bank to make a decision if they will accept agreed amount. With that being said, we have been out of "attorney review" for almost a month and the inspection has been done for 3 weeks. We still have not heard from the bank. I was searching realtytrac.com this evening and saw the property is listed as a pre foreclosure with the amount $11k more than what we are in contract to buy for (I am not sure if this is what is owed or what the home was appraised at). Looking for advice on where to go from here. Should we offer the $11k more or walk? First time buyer, love this house and think it is a great deal... I do have both a realtor and attorney. My attorney is extreemly familiar with foreclosures but usually works on the sellers end. He advised me that it can be a lengthy process and that if I was really interested in the house to go ahead and have the inspection...not only to show the bank that I was still serious about purchasing, but also to know that the house was worth waiting for. My agent is not experienced with the process and neither is the listing agent. She made no mention of the financial situation in the listing, and the sellers attorney is almost completely non-responsive which may be because he may not get paid. And yes...my interest rate has already expired and gone up with my second round of locking it. Very frustruating.

Public Comments

1. Who represents you on this transaction? Do you have an attorney? A realtor? Both? Talk to your representative. You are out of attorney review and haven't heard from the seller and the seller's bank. Often times, the bank will collect bids ( if the property is a desirable one- if it is not, they move quickly to avoid the costs involved to foreclose and to carry the property). Do not offer another $11K unless you are certain the house will appraise for that. Find out why the seller/bank hasn't given you a counter-offer for the $11K difference.If you don't have a deal, you may want to move on. There are lots of nice properties available right now. Don't offer more money yet. Let your attorney or realtor call the seller and sellers representatives and find out what is going on. Otherwise, move on. Best of luck to you. ps- why would you do an inspection if you don't have a firm agreement? This doesn't make sense to me. If you have an agreement that states it is contingent on the lender's approval, that is separate from the attorney review period, unless it is tied into that by specific language. It would be another clause entirely, and also-- your mortgage rate can be impacted by the wait-your rates can go up, they may only be locked in for 30-60 days, otherwise you have to pay $ to lock it in for longer, so make sure this still makes economic sense for you. You really need some legal advice on how to proceed.