Top Three Questions about Foreclosures in GA

Today I met a lovely couple that is interested in buying a
foreclosed townhouse at a price lower than the market average.
They asked me some really great questions, so here are a few.

1.) "What's wrong with this place? It doesn't seem that bad!"
Excellent point. Not all foreclosures are crappy junk piles with
termites and flood damage, waiting to fall down. In this market
(the Atlanta area), we have many great properties that are
nearly new, without much wear and tear, and most of the
appliances are still intact. The only way to know that it's a
foreclosure is to see the 'winterized' notices on the faucets, and
of course, to pull the tax record or history on the property.

2.) "Who owns it? Will they finish repainting, or fix anything
broken?" Usually when a property is foreclosed on, you (and
your agent) are negotiating directly with the lender/owner.
For example, Janie B Good loses the house to ABC Bank.
The bank will send in a crew to appraise the house and
winterize it (depending on the bank's policies), and then
put it on the market at a price that they think will be fair.
ABC Bank has no idea what Janie B Good did to the property
during her ownership of it, so they can't vouch for the condition
and therefore sell the property 'as-is.' They will not (usually)
fix anything, so if you want a new ceiling fan, the best way to
ask for it is to drop your offer price by $150, which is about
the price of a similar new brown ceiling fan.

3.) "How do we make an offer? What if we change our minds?"
The answer will depend on who owns the property. Sometimes
an agent will need to fill out an application online for you (as in
HUD properties), othertimes, you and the agent will fill out all
the paperwork, add a few extras (earnest money check, pre-
approval letter, etc) and fax it all to the seller, then wait 7-10
business days for them to respond. They will call the agent
directly, and the agent will call you with the details. At that
point, either you continue to negotiate, or you accept the final
terms, and move on to a home inspection. If you are not very
committed to buying the property, I would suggest NOT
writing an offer. Good agents know how to write loop holes into
the initial offer to protect the buyer, in the event that something
big pops up that affects the situation.