What to Expect When Offering to Buy a Foreclosure in Murphy NC

When you find a foreclosed home in Murphy NC that you want to buy, there are several things you need to know to expect when you go through the process. It will be an interesting experience that is unlike buying a home from a “normal” seller.

You found a foreclosure home you want to buy. Here are some tips and what to expect.

(I also recommend you read our article on finding and buying foreclosures in Murphy NC)


  1. Lots of paperwork. You’ll have all the standard paperwork you have when you buy a house and then endless addendums they will send afterward for you to sign.
  2. Crazy Addendums. They’re something else. They will limit the bank from any and all liability and specify how to expect the closing will take place. There will be mold addendums even if the house doesn’t have mold (basically says the bank doesn’t know about any mold and is not liable for any), addendums on other hazards, addendums to the addendums, and addendums to the amended addendum! Trust me though… there’s a lot.  You will find contradictions in the paperwork. For example, in one spot they may say they will pay your closing costs and then in another say you are responsible for them.
  3. Slow paperwork processing. It takes the bank forever to sign your offer to purchase. They have to approve it on many different levels and they are in no rush to sign it. They will give you verbal acceptance pretty quickly and the signed and executed offer can often take a week or more to receive.
  4. Contradictions. You’ll find the left hand doesn’t talk to the right hand on the bank’s side. The listing agent will contradict what the closing agent said and so on. Be prepared for a few “inconveniences” to crop up because of this. You have to remember, “I’m getting a great deal. I must be patient…” and so on to put up with some of it.
  5. Delayed closing. This is a case of the left hand not communicating with the right hand. If you can close in a week and they agree to it on the contract, expect it not to happen. Not because they have ill intent, rather because they have so many steps they have to go through and it just doesn’t “accelerate” well. No need to worry, no matter where you are at, you can get closing documents by mail or UPS.
  6. Attorney costs. Sometimes they offer to pay your closing costs. There is a bit of a catch to this. If you do, they expect you to use their attorney. Many times they will even pay for title insurance for you. If they do, it’s not too bad of a deal. There is a bit of consideration to this, however. Who do you think an attorney that represents the bank and does many transactions for them is most interested in? Especially if they’ve never seen you and don’t know you from Adam, they’re not as worried about you. Hiring your own closing attorney may cost you more, and it may be worth it to know you have someone who is representing your best interests – not the banks. You’ll have to decide which approach is better for you. It may even be worth it to consult an attorney (often a free consultation with many of our local attorneys) to find out the benefits of both ways. You can find an attorney on our recommended contractors list, or Gotta Guy List as we call it.
  7. Get EVERYTHING in writing. When we got to the closing table for the foreclosure we bought, several surprises happened. They told us they would pay for our attorney and title insurance costs. We had this verbally, not in writing. We ended up having to pay for our attorney costs. They told us they would repair some plumbing issues we discovered. They disputed it. We produced email correspondence on it where they agreed to pay it and they did, indeed, end up paying it. Point is, since the right hand doesn’t communicate with the left very well, you need to have everything they agree to in writing.
  8. Remember and always come back to the fact that you’re getting a great deal. Unless the stars align in a way that I’ve not seen, expect closing not to be as smooth as it is with a “normal” seller. There’s a good chance you’ll get frustrated with it, so always come back to and remember that you’re getting a great deal. After all, you’ll be saving thousands and when you look back on it after owning your home for a few years, it will all be worth it.
John Poltrock, Certified Residential Specialist – The POLTROCK TEAM at RE/MAX Mountain Properties – www.MyMurphy.com – JohnPoltrock@gmail.com – Call Toll Free at 1-866-Murphy-NC or 1-866-687-7496