Steps to Purchasing a Foreclosure:

• Inform Clients of Risks:
• Make sure your clients understand the risks of buying a foreclosure, including potential damage or removal of property by the previous owners, as properties are sold "as-is, where-is."
• Review Schedule A Before Writing the Offer:
• Ensure you and your clients read the Schedule A thoroughly. The property is sold without any warranties or guarantees, meaning sellers or lawyers have no obligation to fix or replace anything.
• Write the Offer with Normal Subjects:
• The offer can include standard subject clauses (financing, inspection, etc.). Once accepted, the client can proceed with due diligence during the subject removal period, just like a typical transaction.
• Accepted Offer and Deposit Submission:
• After subject removal, submit the deposit and wait for a court date. During this waiting period, the seller (court/lawyers) may publish the accepted offer price publicly and solicit competing bids from other buyers.
• Possibility of Competing Offers:
• Other offers may come in, giving the original buyer a chance to submit a higher bid by a set deadline (usually a few business days before the court date). Clients should discuss this with their lawyer or review Schedule A for specifics.
• Current Owner’s Right to Refinance:
• The current owner may be notified once an offer is accepted and may have the opportunity to still refinance or make arrangements with the lender to keep the house up until the court date.
• Court Date Timeline:
• Check with the listing realtor or lawyer on court date timelines, which can range from 10 days to 6-8 weeks.
• Once the deposit is in, the buyer cannot back out before the court date.
• Attending the Court Date:
• Buyers should attend the court hearing if hearing is not done virtually -Check with Schedule A, Listing Realtor or Lawyer on in person or virtual. Dress appropriately, and arrive early. While a lawyer or realtor can attend on their behalf, it is strongly recommended for buyers to be present. Their attendance can be crucial if any issues arise.
• After Court Approval:
• Once the court approves the sale, buyers will get deposit back if they were outbid, or they will await for their completion and possession dates if they were successful.
• Possession Day Challenges:
• If the current occupants (previous owners or tenants) refuse to leave on possession day, the Schedule A should include a clause requiring the petitioner to apply for a writ of possession. - This should be done in a time of the essence fashion.
• Handling Non-Vacating Owners/Tenants:
• Buyers can either let the petitioner handle the writ of possession ( no cost to buyer ) or choose to have their own lawyer apply for it ( costs may be involved )
• Hire a court-approved bailiff to enforce the writ, which may involve additional costs if the petitioner does not arrange it.
• If doing this independently, use discretion ( the element of surprise) to prevent occupants from removing/destroying property before the bailiff arrives.

This guide is for informational purposes only and does not constitute legal advice. Buyers should consult with their lawyer or real estate professional for specific advice related to their unique situation. The foreclosure process can vary depending on local laws and individual circumstances.