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Buying a bank foreclosed home

By
Real Estate Agent with Five Star Real Estate

I have worked with banks for many years and some of the tricks I have seen for both agents and buyers to get the best deal is be prepared. Present the best offer, complete approval letter and read and sign the requiered addedumn All banks have different requirements you need to agree to, read it ALL. It will save you a lot of grief and money in the end. I have one bank where if you do not ask you will have to pay both sides of the title insurance. Again read it all and know what extra closing costs are going to be. Typically due to the title co you will pay higher closing cost to the title company. Just be prepared. In the long run it will pay off.

The banks like to see owner occupied and when I present  the purcahse agreement to the bank ther always ask. If the offer is to low they may not even reply however I have seen 3 people make the same offer and the bank will finally accept it based on days on the market. Timing is everything, but you also risk losing the house if you wait to long. Most often even the list price is more than competive so if you like the house and have tryed making offers but the bank will not come down think again before walking away. The bank is not afraid to walk away. If you are willing to risk you can always wait and present another offer later and see if time has made a differnece to the bank. I have seen winners and losers playing this game.

There is often a penalty clause if you do not close on specifed date that is why a good lender is key. They will charge this penalty. Again prepare and have all the docs the lender will require to the lender  even before you make and offer. Surprices are not good. If for some reason you know ahead of time there will be a delay ask the bank to sign an addendumn to extend the closing date.

It is a great time to buy!!

Comments(6)

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Michael A. Caruso
Surterre Properties - Laguna Niguel, CA

Hi Linda,

Good info.  The more prepared you are going in the better position you will be in for your clients.

Have a successful week.

Michael A. Caruso

Feb 19, 2008 04:14 AM
Eugene Jones
Weichert Realtors - Somerville, NJ

Good information Linda. I received a call from someone yesterday looking to bid over $100,000 less than what the bank is asking. Should I even bother?

Feb 19, 2008 04:20 AM
Linda DeZeeuw
Five Star Real Estate - Grand Rapids, MI

That depends on time on the market and is the buyer willing to make a reasonable response to the banks counter (if they reapond at all). Sometimes a buyer is testing the waters but is still serious. For the buyer that keeps making low ball offers I would not waste my time. Sometimes you need to go thru the exercise just to educate the buyer, in the end the offer that is high enough to get is reaponse from the bank is the best way to go.

Feb 19, 2008 04:50 AM
Keith Elliott Jr
KEIRE Realty Group - Manassas, VA
Principal Broker/Owner

Hi Linda,

Welcome to Active Rain and congrats on your first post! The opportunities to learn and network are incredible here. Best of luck to ya!

-Keith

Feb 19, 2008 08:36 AM
Benjamin Clark
Homebuyer Representation, Inc. - Salt Lake City, UT
Buyer's Agent - Certified Negotiation Expert
Linda, Welcome to Active Rain! For some tips on how to get started here, check out my blog entry at ActiveRain Fast-Start Tips for Quick and Easy Points

I would suggest adding a photo to each blog entry if you can think of something relevant to catch people's eye. Many visitors come straight from the search engines and pictures, bullets and use of white space makes your content more attractive!

Happy blogging and good luck!

Feb 19, 2008 04:52 PM
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

Welcome back to ActiveRain!

     I encourage you to take another look at the website.  Surf some blogs, leave some comments.  Better yet, post a Blog.

    Best to you!

Jul 06, 2015 12:17 PM