3 Rules for Buying a Foreclosed Home by Leander McClain, Realtor
When it comes to buying a foreclosure,
RULE #1 - YOU MUST FOLLOW THE RULES!
RULE #2 - EVERY BANK HAS DIFFERENT RULES!
Rule #3 – YOU ARE NO EXCEPTION!
The rules are so simple and so obvious that even a four year old child can understand. Most of my listings are bank foreclosures. I can’t tell you the number of times I have heard the following lines.
…… My office doesn’t prepare offers that way.
…..We don’t have the forms the bank requires.
….In Gloucester County, that’s not the way that we do things.
….Have you seen this house? (duh….it’s my listing, of course I have seen it)
….Can’t you call the bank and explain to them why my client should be an exception to the rules?
…. We want to put in an offer, but we want to do it our way!
….It’s been two days, how come we don’t have a response to our offer?
…. If we don’t have a response by COB tomorrow, we are withdrawing our offer!
…This is our best and final offer……well maybe our first best and final.
The public has a misunderstanding that banks want to give away foreclosed homes. Nothing can be farther from the truth. Each bank has an inventory of thousands of homes. The asset managers are attempting to provide the greatest return on investment possible. The bank is in business to make money. In this case, they are trying to minimize losses. Are they going to sell homes for 50% of list price? Most times NO! Because the bank’s asset managers are each working with hundreds of deals, there are systems and process in place to make managing that task easier. It makes it easier to review offers when each offer is presented on exactly the same forms. My experience has shown that offers which are presently incorrectly are rejected. In some cases, the buyer won’t know that their offer has been rejected. It’s really quite simple.
- Learn the rules
- Play by the rules
- Have patience
It's just like kindergarten all over again. If you play nice and listen to the teacher, you will get a cookie at snack time.
Good Luck in the search for your new foreclosed home.
If you are looking for a foreclosed home in NJ, Atlantic & Pacific has an inventory of 90+ homes in Northern and Southern, NJ. Give me a call today! (856-438-0399) I will put you in touch with the agent that is covering the towns you are interested in.
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