Bank Owned, Foreclosure, Reo Property: Tips On Buying
How To Get Your Offer Accepted By The Bank
With the drastic decline in home prices and historically low interest rates, distressed properties are in high demand. It is common for there to be multiple offers on the "best" deals. Having the following completed prior to submitting an offer will give you the greatest chance of purchasing a bank owned foreclosure:
- Pre-approval with a reputable lender (a direct lender is optimal)
- Proof of down payment
- Copy of your fico scores
Costly Mistakes To Avoid When Buying A Bank Owned or Foreclosure Home:
- Not all foreclosures are a bargain
- Overbidding, some properties are priced low but are bid higher than "market" value
- No inspection necessary, we always recommend buyer's to conduct an inspection
- No clear title, unpaid liens after closing can be a very unpleasant circumstance for a new owner
- Not enough cash budgeted for closing costs, fees and unforeseen expenses
- Not asking questions about all relevant permits, past due association assessments or dues
Experienced representation is very important in negotiating and buying a bank foreclosure. Unforseen circumstances can change a good deal into a not so good deal. Due to the high demand for foreclosures and the complexity of short sales, it is extremely beneficial to have Real Estate professionals who are experienced in getting your offer through while negotiating the best possible price along with protecting your interests throughout the escrow process. We are dedicated Realtors who have years of experience in negotiating the purchase of distressed properties.
Please feel free to contact us for valuable insight on how to buy a bank foreclosure and/or short sale.