Finding a Bank Repo to Buy These Days is Difficult Enough
To Find these Foreclosures: Talk with local real estate agents and search online. Any knowledgeable agent can direct buyers to bank-REO homes. Potential buyers wanting to search on their own beforehand can find local websites that allow consumers to do free searches . Government backed mortgage companies Freddie Mac and Fannie Mae market foreclosures nationwide using HomeSteps.com and HomePath.com , respectively. Neither entity charges a fee. Also, Freddie and Fannie have a program they call First Look that give a heard start to first-time buyers requiring financing ahead of investors in their quest for bank-owned properties. Using this program, buyers who plan on occupying a home as their primary residence may submit an offer during a window period of 15-days without investor competition. Subsequent to the 15 days, offers from investor will be also considered along with other bids.
You must begin with Your Absolute Best Offer: We aren't back in 2007 or 2008, as sales were sluggish while sellers became excited with just about any offer. Demand causes bidding feuds. If I were buying, I definitely would not submit an offering under the asking price, My suggestion is to submit an offer for the absolute most you would ever consider paying for the property.
Consider making a big good-faith deposit up front: When they make an offer, most buyers put down $1,000 as a deposit. Buyers wanting to make an impression the bank may put up substantially more. For cash buyers one way to win is to put down the total purchase price. The rationale is that: they will pay the entire amount at closing in just a few weeks, so they may as well go ahead and pay it out front now as a way of showing serious interest. However that's not strategy for those with hearts. If a buyer must get out of the offer for some reason not provided in the contract, their deposit could be at risk,
Find ways to help: Volunteer to do a fast close. Also when submitting an offer, buyers should submit all the necessary paperwork. If a bidder fails to include their "proof of funds" or some other document, the bank might just go on to an offer that's more complete.
Stand Your Ground: Do not cave in over unreasonable seller demands. For instance, if you want the property, you must wave the right to do a home inspection because so there are many bidders were making offers.. Buying a foreclosed property without getting inspections is risky as so many of these homes are in such disrepair, while some have been damaged on purpose by the prior owners.
Feb 28, 2012
Buying Real Estate