Foreclosures and Short Sales can be great vehicles to buying properties at rock bottom pricing.  It can also be very time consuming.  Here is a short "To Do" list when purchasing a Short Sale or Foreclosure property:

 1:  Contact a qualified Realtor to gather all facts and details pertinent to the property that you are interested in.  You will want to make sure that the home does not carry with it any clouds on title, free of all liens and/or assessments.  This should be carried out through the title company of you choosing.

 2:  Be sure to consult with a qualified Mortgage Specialist so that your payments, insurance, and tax consequences are made aware and available to you prior to purchasing.  Also, be sure to carry an LSR (Loan Status Report) with you during all offers that you may make.  This lets the banks know that you are a serious buyer and are fully qualified to be purchasing.

 3:  Once you have considered all options in making a purchase (Taxes, Payments, and Location, Pricing of the home) make an offer.  This should be done with your Realtor and possibly with your Mortgage Specialist. 

 4:  Open Escrow:  This is when you provide/deposit good faith monies into a third party (Title Company) account.  This is also referred as earnest money.  These monies will remain with the title company until the completion of the transaction and money changes hands.  The money will also be used to balance the debits and credits of the buyer(s) and seller(s).

 5:  During the first 10 days after contract acceptance and escrow opening, your Realtor should be calling to order a home inspection, termite inspection; mold inspection, appraisal, and any other inspections that the two of you decide will assist you in making the right decision of the home.  These 10 days are called the inspection period.  This is a timeline that is VERY IMPORTANT to you as a buyer because it protects you in the event that the home does not "check out".  This will allow you to walk away from the transaction without penalty and gain your earnest money back from the title company. 

 6:  BINSR (Buyer inspection and Seller Response) this is when you and your Realtor discuss the items that the various inspectors found in the home that you have picked.  Your Realtor will submit all items that are disapproved by you as the new owner.  This will hopefully give the seller the opportunity to fix, repair, and or replace those items 5 days prior to COE (close of escrow)

 7:  Walk-thru:  5 Days prior to the walk through you and your Realtor should be inspecting the property to make sure that all items in the BINSR (Buyer inspection notice and seller response) were in fact fixed, repaired and replaced.  This gives you one last chance to inspect prior to closing on the transaction.  This is also called "Funding". (Title Company instructs where to send the money).

 8:  Closing:  You can expect that the total time to move in after opening escrow and having a completed contract is about 30 days.  By this time the home should be recorded in your name as the new buyer and you have the keys to your new home or investment.

 I hope you enjoyed these few tips and I wish you the best in your efforts in buying homes in the future.