What does it mean when a bank accepts your offer for a foreclosed home?

I put a cash offer into the bank for the asking price of the house and they have accepted it. Does that mean it is sold to me?

Asked on August 19, 2011 Indiana

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

When a lending insitution has foreclosed on a mortgage or trust deed securing its loan which is in a first secured position on a home, by operation of statute it takes legal title to the property by way of a trustee's deed.

You made a written offer to purchase the foreclosed home. The bank has accepted the offer. This means that you are in contract to purchase this home. If you need a loan to purchase the home, you need to get loan approval to close the transaction. You also need to make sure you have the needed experts inspect the property to make sure there are no hidden problems with it before close of escrow. If everything goes as planned, you will end up with the home.

Good luck.


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