Taking the Stress out of Purchasing Distressed Properties

Purchasing property which has been vacant, foreclosed or abandoned can be stressful and complicated. Consultation with a real estate attorney, cooperation with government officials and collaboration with community organizations can eliminate or alleviate the bureaucratic stress. Your decision to purchase a distressed property can make major benefits to a city, community and YOU.  A major key to your acquisition of a distressed property is your determination to distinguish clearly between allies and adversaries in the negotiation, acquisition, renovation and operation processes.

CONSULTATION WITH REAL ESTATE ATTORNEY

Meet with a real estate attorney to ask questions about your options for acquiring a distressed property.

Listen with an open mind about the legal requirements and restraints on your plans, priorities and purposes for the property.

Decide whether you will proceed with representation by an attorney or handle the matters on your own.

Once you retain an attorney, refrain from speaking with other parties. Other parties may sense your resistance and rebelliousness and take advantage of the weakness in the attorney-client relationship. Remember, your former allies may not have the position of adversaries in the negotiation and operation phases of your real property acquisition.










COOPERATION WITH GOVERNMENT OFFICIALS



Federal, state and local laws regulate the purchase and usage of real property. The steps to accessing and acquiring real property require communication and cooperation with government officials including elected legislators, zoning administrators and planning department directors. Do not expect that government officials will cater to your priorities, budgets, wishes, visions, plans, ideas or priorities.

Keep a log of ALL contacts with government agencies. Record dates, telephone numbers, e-mail addresses, meeting notes and follow-up goals.

Federal, state and local governments operate under laws, statutes, regulations and ordinances which advance public policies. Government agencies take into careful consideration the composition and concerns of current property owners, adjacent businesses and neighborhood residents.


COLLABORATION WITH COMMUNITY ORGANIZATIONS








Make contact with the local chamber of commerce, educational institutions and community organizations which promote the well-being and well-doing of the property address which you seek to acquire. Clearly determine your intended use of the property and its projected impact of the community. Zoning boards, planning commissions and grant funders will solicit input and often approval from community members.

COMMUNICATION WITH INTERESTED PARTIES

For multi-dwelling and large scale properties, clearly and simply provide all interested parties with written outlines, structural diagrams and programmatic aims for the property you intend to purchase. Your plans will stall if interested parties are not in agreement with your purposes, plans and priorities. If you keep interested parties in the "dark" they may work to keep you "off the block".