I am so excited!!!!! (And a little nervous) The bank just accepted my personal offer on a foreclosed 2 Family in Tower Grove South. It’s just a few blocks from the park and one block from Morganford. So my prospective tenants will be able to walk to Local Harvest Grocery Store and stumble home from Three Monkeys. The sale price was under $50,000 and with the required down payment and interest rate of 4.875% my monthly mortgage will be less than $200. Of course it needs a little work, but less than one might think for the price. Once it’s up an running, I project that in 3 years, my initial investment (down payment plus fix up costs) will be paid back and the whole building could be paid off in 7 years!!!!! For me, it is the right house at the right time.
But I am nervous. Like any investment it’s no sure thing and the benefits come with a good amount of responsibilities. The first of which is the foreclosure addendum to the sale contract.
Here’s a excerpt from the contract I just signed:
The Purchaser agrees that the Seller shall not be liable to the Purchaser for any special, consequential or punitive damages whatsoever, whether in contract, tort (including negligence and strict liability) or any other legal or equitable principle etc etc. etc.
By signing these documents, I am basically agreeing to take the house AS-IS and acknowledging that if I (the Purchaser) default then, the Seller (the bank) can keep my earnest money and pursue “any other remedy available to Seller at law and/or inequity.” However, if the Seller defaults, the Purchaser (me) “shall be entitled to the return of the earnest money deposit as Purchaser’s sole and exclusive remedy at law and/or equity.”
While that’s doesn’t sound exactly fair, it doesn’t matter. If I want that 2 Family, then I need to sign those documents and abide by those terms. And I am perfectly willing to do it. Because in reality, it is not as scary as it sounds. As long as you know how to manage the process including performing inspections and securing financing, it will be fine.
If you have never purchased a foreclosure but are seriously considering it as an investment or personal residence, come to the CIRCA PROPERTIES FORECLOSURE TOUR.
WHO: The Circa Team will host up to 30 participants
WHAT: Brief Seminar on Understanding the Foreclosure Purchase Process and Tour of 5 Foreclosed Properties.
WHEN: 10AM-2PM on Saturday, November 13, 2010
WHERE: Seminar begins at Urban Eats in Dutchtown (3301 Meramec, Saint Louis, MO 63118). Tour follows immediately.
WHY: Learn how the foreclosure purchasing process works and view foreclosed properties.
HOW: Register at our EventBright Page
This seminar is FREE, but you must REGISTER! Only the first 30 people will be accepted.
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