Buying a foreclosure can seem like a good way to save on buying a home, but the process can be complicated. Not only can you run into problems with the lender, but you also might face issues with the property itself. If you are considering buying a foreclosure, here are some common problems you can run into and what you can do to overcome them.  

Lack of Disclosures

When a home goes through foreclosure, ownership of it transfers to the lender. The property is then considered to be "real estate owned." In some states, lenders are not always required to provide the same disclosures that a homeowner would. As a result, you could be faced with the possibility of buying a home that has issues that were not fully disclosed to you.  

If your state does not require certain disclosures for a real estate owned property, there are ways you can learn more about the home. One of the best possible resources is the person who previously owned the home. If you are unable to locate the previous owner, your real estate attorney can request past records and permits about the home from the city.  

Your attorney can even help find the realtor who handled the purchase of the home in the past. If the home was last sold within the last few years, there is a possibility that the realtor retained copies of the records from the closing.  

Lender Taking Too Long 

Logically, the lender should be interested in selling the foreclosure property as soon as possible. The reality is that it is not uncommon for lenders to take a long time in processing sales. As a result, you could easily spend months waiting to learn whether or not you can purchase a foreclosure property.  

One of the reasons that the buying process can take so long is the lender needs to thoroughly review the purchase contract and the buyer's financing documentation. Although you cannot push the lender to review the documentation quicker, you can ensure that all of the paperwork is in order. Before submitting the contract and your documentation, your real estate attorney can review it to ensure that everything is in order.  

Another possible reason that there is a delay is that the lender might reject your bid. If that occurs, you could be left to find additional funding to make a more substantial bid. To avoid this, you need to ensure that the bid you initially submit is a good offer. Your real estate agent can help you determine a solid number. You also need to keep raising funds just in case you have to up your offer. 

For more information, contact Souders Law Group or a similar firm.