When BethAnne Hoffmann and her fiance, Andrew Garcia, began looking for their first home last year, they ruled out complicated short-sales and foreclosures as options.
Then the two fell in love with a foreclosed single-family home in Baltimore's Mayfield neighborhood and process got only more difficult from there.
Even though the bank accepted the couple's $170,000 offer on January 20 and had insisted on a short settlement of 30 days, the bank did not have a clear title on the house when closing day arrived, Hoffmann said.
"The [bank's] Realtor said 'We'll have it cleared for you in a week.' Our title company said this was a bigger issue," Hoffmann said, recalling how the couple scrambled to meet the bank's deadline. "It was week after week of not knowing what was going on."
These days, it's easier than ever to find foreclosures with auctions, tours and Web sites dedicated to such properties.
But with more foreclosures on the market, home buyers like Hoffmann and Garcia are frequently finding themselves navigating a process that can be filled with snags and other pitfalls.
"Foreclosure is the buzz word," said Jonathan Benya, a real estate agent with Century 21 New Millennium in La Plata, who represents banks and buyers in foreclosures. "Everyone thinks they want a foreclosure even if they actually want one or not."
For the young Baltimore couple, getting the keys to their new house meant experiencing frustration, bouts of anger and also determination to secure the property.
"At one point, we were ready to give up," said Hoffmann, 26, an account manager at a creative marketing firm. "And when we really considered giving up and thought about all the hard work we put in, [we said] we can't give up. This is the house we want and the neighborhood we want to be in. It was definitely worth the struggle for us. I would not recommend buying a foreclosed home in the neighborhood you're not seriously in love with."
Hoffmann advises homeowners to find an agent who will be patient and be an advocate for you.
David McIlvaine, president of the Greater Baltimore Board of Realtors and a broker with Keller Williams in Ellicott City, suggests home buyers find a representative who has experience in completing foreclosure deals.
"This is a niche market that involves agents that understand the system and the process," said McIlvaine, who frequently represents banks in foreclosure sales.
