What are the consequences of starting work on a foreclosure house before closing?

**Duc1198** · 11-12-2010, 09:00 AM

I know the seller(fannie mae I think) wont rent the unit out for the few days/weeks before closing so what if you start working on a condo you know 100% you're going to close on (cash deal, have closing date, money is wired, etc) and they find out about it?
The combination lock box thats on it is broken and stays open with key in it so realtor wont be responsible for giving the key either.
Has anyone seen this happen?

**Jonathan Radford** · 12-02-2010, 07:50 AM

I would be wary of working on a deal for a property that has not been closed on. Even though it seems to be a "sure bet" from your description, you are putting your reputation and your client's satisfaction at risk. Until the deal is signed and finalized on paper, I would be very frank with your client as to where the deal currently stands.

**byHomeOwner** · 12-02-2010, 09:54 AM

Clearly the biggest risk is that for some reason the house does not close. However I must wonder how you are able to get a building permit on the property if your not the owner. Like wise are you not setting yourself up for a trespassing charge if a local doesn't like the noise and calls the cops?

**Sam Rasain** · 01-04-2011, 05:17 PM

Just dont do it....................Seriously there could be liability issues, legal issues and you could lose money.

**Yballe55** · 01-04-2011, 07:42 PM

I wouldn't do that. There's a possibility that they charge your false action. If you're a broker, be sure that your actions are nice. All your moves will reflect on your job.

**mnhouses** · 01-14-2011, 09:20 PM

This has trespassing written all over it. Not worth the risk. Don't do it!!

**Esmond** · 01-19-2011, 10:15 PM

Hi fellows....
Many of us don’t understand the foreclosure meaning. Foreclosure is a procedure that takes place when the borrower is not able to pay the loan on time. Due to this reason the lender would declare the borrower as default. If the borrower is not able to pay the loan on time then the lender would try to sell the property and recover the loss that was made by the lender. Foreclosure would have an effect on the credit of the borrower. The credit of the borrower would decreases.i hope you would have known the meaning of foreclosure by now.