Here's a few more Foreclosure FAQ's that I get from buyers and other agent.

Doesn't the Bank or Mortgage company want to get this home off their books, after all, they are not in the real estate business?

Absolutely. However, as a rule of thumb, for every $3000 they reduce the price, they can keep the home another 30 days. Furthermore, it is our job to keep the Seller informed of current market conditions. They know the market is slow, particularly for repaired homes.  The Corporate seller is usually NOT considered a motivated seller until the REO has been on the market over 90 days. 

Some properties are not repaired, why?

Not all banks and mortgage companies repair their foreclosed homes. Some prefer to sell them AS-IS. Sometimes, even a bank that repairs properties will choose not to repair a particular property due to other factors.

Are properties sold on a bid basis like an auction?

If the home is to be sold on a sealed bid or auction type basis, the information sheet on this web site or the MLS listing will indicate it is to be sold in this manner.

Generally, its like buying any other home in the neighborhood. You will write an offer with a SunRaye Realty agent or your own Realtor using the appropriate contract form and any addendums if necessary, and we will submit it to the Seller. They will negotiate only with you unless we have more than one offer on the property, what we call a multiple offer situation.

What if there is more than one offer on a property?

In 2004-05, multiple offers on a property was a common occurrence. When this occurs, all offerers will be requested to submit their highest and best or final offer by a certain date and time. The bank seller will take best offer and accept it, give a counter offer, or reject all offers.

If you have submitted an offer on a property along with other buyers, once you are notified of the multiple offers, submit your best offer for the property. Your best offer is the value in which at one penny more you do not want the house...but at one penny less you would have been mad at yourself for not having offered more. Frequently we hear, "I would have paid more if the Seller would have given me a counter offer." In a multiple offer situation, you may not get that counter offer because another buyer is offering more for the home.

More than likely, in a multiple offer situation, the home will sell above the Seller's asking price. In a strong market, some properties have as many as seven or eight offers within 12 hours of listing, and the property will sell at $1000 to $10,000 over Seller's asking price. In one instance, we had a home that was bid to $40,000 over asking price.

Are there any Seller Defect Disclosures for the property?

None. The Seller has never lived in the property and therefore can not disclose what it does not know. There is no former occupant we can contact to obtain information about the home. Generally, unlike a corporate relocation home, the bank Seller does not obtain an inspection of the home.

In those instances where the bank Seller has performed an inspection of one or all components of the home, we will provide you copies of the bank's inspection for informational purposes only. For example, if we have been required to obtain a termite or wood destroying organism inspection we will provide you with a copy once an offer has been received and before a final contract is negotiated. If we have inspections of the roof, air conditioning, or other components of the home, we will provide those once an offer has been received but before a final contract is negotiated.

These inspection reports should not take the place of you the buyer retaining your own inspector.

I have a enough FAQ's for approximately two more blogs.  I hope these are helpful