Looking to Purchase a foreclosure? You have found the most accurate list of foreclosures in Baldwin County. No fee or registration is required to view all of these homes for sale and the listings on movetobaldwincounty.com are updated hourly.
Baldwin County Foreclosures can be great deals, but foreclosures are not right for everyone. Here are four things every buyer must know before buying a Baldwin County foreclosure.
1. Buying a Home As-Is
When you buy a foreclosure property, you need to know that banks are typically quite serious about selling a property in its current condition, or as-is. This means that, although you can certainly ask the bank to pay for repairs, the bank is already telling you up-front that it will not complete or pay for any repairs. What you see is what you get.
What condition can you expect a foreclosure listing to be in? You name it, we've seen it! Some foreclosure listings are in terrible condition (cracked slabs, leaking roofs, termite-infested, bad plumbing, bad odors, ruined flooring, etc.). Some simply need some new flooring, paint, and appliances. Others have already been cleaned and fixed-up - at least to some extent. If you are considering looking at Baldwin Couny foreclosures for sale, you should have already considered the fact that you may need to put some work into your new home. You should also determine how much it's going to cost you in repairs before you write an offer to purchase a foreclosure.
2. No Disclosures
When you're buying a foreclosure property, you need to know that most sellers (banks or individuals) provide no disclosure about the condition or history of the property. This makes a home inspection a really important piece of the process so the buyer goes into the transaction with their eyes open.
Your research and inspection of the property become that much more critical when you purchase a foreclosure. Be sure to hire a licensed property inspector, and leave no stone unturned.
3. Alabama Right of Redemption
Under Alabama law, the homeowner who lost their home through foreclosure, as well as other affected parties (such as second mortgage holders and other lien holders) the right to redeem the property for a period of time This right allows a person to buy back their home after it has been sold at a foreclosure sale by paying the price that the new owner paid for the property, plus additional costs.
Alabama’s statutory right of redemption, contained in the Code of Alabama §§ 6-5-247 to 6-5-257, is generally available for 180 days after the foreclosure sale for residential properties that qualify as a homestead, and for one year for non-homestead residential properties and commercial properties. Here, it is important to note that this 180-day window is provided for mortgages executed after January 1st, 2016, pursuant to a change in law; all others executed before that date are granted one year. Be warned that these timeframes can change given the circumstances of the foreclosure. For example, if a property in Alabama is sold at a foreclosure sale and the original owner fails to vacate the premises within 10 days of receiving a written demand to do so from the new owner, the original owner may lose their statutory right of redemption. Other actions can also cause the right of redemption period to change so it is always advisable to consult with a competent attorney to discuss your legal rights and options.
If you are considering purchasing a foreclosed property in Alabama it is very important to remember that the original owner may choose to exercise their statutory right of redemption after you buy the property. While this isn’t terribly common, if it does happen then you will be reimbursed the amount of money that you paid at the foreclosure sale, plus various other costs such as interest, taxes that you have paid on the property, and the value of any improvements that you made to the property. You will then be forced to convey the property back to the party who exercised their right of redemption.
Mortgage companies often require a "redemption bond" which insures the mortgage is paid in full if the property is redeemed.
It is important to understand that as a buyer of a foreclosure property, your patience is going to be tested. You are not dealing with a typical seller. You're frequently dealing with an institution, and everything is going to take longer than normal.
When you submit your offer, you could normally expect a response within three days, but with a bank-owned foreclosure it may take a week or two. If your offer is accepted, you may need to wait another week or two until the seller actually signs the contract. This can be frustrating to deal with, but not if you already know what to expect.
There is a lot more to know about Baldwin County foreclosures, but these four issues are a good starting point. Some of our clients purchase foreclosures. Others instruct us not to show them any foreclosures. Our job is to provide you with all the information you need to make a decision. We'll never tell you what to do, because it's your decision. However, you can count on our years of experience and our specialty of helping buyers-only to provide wise counsel throughout your real estate purchase.