When buying a foreclosure, who are the various players in the process?
When you are buying a foreclosure, who are the various players involved in the process? When a home is taken back in foreclosure, the deed is now in the hands of the original lender. They have seized the property back due to a default condition, and the original homeowner and borrower is no longer in the picture.
So the bank or mortgage company is now the seller, and that is their role.
Because they are a large corporation usually, they will hire or have established a
middle property management company which is also called an ‘Asset Management Company’ to contract with a local Realtor, and sell the home. This asset management company is going to take control of securing the home, by changing the locks, boarding up broken windows, and if it is in the winter, seeing that the property is winterized.
They will also sometimes delegate some of these responsibilities to the local Realtor, who will in turn hire local contractors, etc. The local Realtor is the listing agent. They receive a listing agreement which covers the price the seller is offering to market the home at, the terms they will consider, and it also covers a time frame for the listing period. These are the key players on the selling side.
On the buying side, there is you as the buyer and your own Realtor if you have one. You can work with the listing agent directly if you do not have your own Realtor, but realize that the listing agent as a contractual obligation to represent the seller. Their primary allegiance is to their client, which in this case is the bank. So is you want some independent representation in the process, it is recommended that you acquire the assistance of your own Realtor to represent you as a ‘Buyers Agent’ in the process.
If you are looking to buy a foreclosure in Battle Creek or the Southwest Michigan area give me a call, and I would be happy to assist you. I can be reached at: 269-441-8182 or through my website at: www.michaeldelaware.com.