From an upcoming newletter!
Foreclosures
By now, it seems as if every angle of the residential foreclosure debacle has been written about. . Following are observations about buying a foreclosure learned from the field:
•· Buyers who are interested in a well-located foreclosed property that shows reasonably well & is priced competitively should know that they will be in a bidding war for that property. If you think the property is a good value, so will others;
•· The lenders who own these foreclosures are seeking to minimize their losses. The winning offer will be that offer that nets the most money to the owner. This is the time to submit what banks refer to as ‘your highest & best offer';
•· Thinking too long about the property could cost you, i.e. another offer may be accepted;
•· Buyers should be very prepared with a prequalification letter (if financing) or proof of funds document (if all cash). Down payments should be ready in a checking account;
•· Usually, the only contingencies acceptable to a foreclosure owner are financing & inspections. In some instances, bank/owners may require that any property inspections be performed before an offer is submitted, in which case an offer may likely include only the financing contingency.
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