Many investors today are searching out property that has been foreclosed on in the Hutchinson, MN area. They are finding some really good values on properties, that with a little work can be turned around and sold for a profit.
There is one warning that buyers of foreclosed properties should be aware of. In the contracts that these buyers sign with the sellers (ususally mortgage companies), there is a clause that says that the “servicing company” has the right to step in and buy the property any time prior to closing.
This doesn’t happen real often, but it is happening. When the “servicing company” comes in and exercises their option to purchase the property, the investor/buyer is out any money they have spent to that point. This includes any inspection fees, appraisal fees, etc.
So, just a little warning to investors/buyers that are purchasing foreclosed property. Read the papers you are signing so there are no surprises!