3705 Harvard in Lake Charles, Louisiana sold as a Foreclosed bank owned property. This 3 bedroom 1 bath home is located near McNeese State University and has the potential of being transformed into a very nice home that is conveniently located and therefore is a good investment for a buyer at the closed price of $60,000.
This particular property had several offers submitted and the "bank" which the bank kept rejecting. Due to the amount of work that is needed to re-hab the house (rotting windows, plumbing and a known termite treatment needed) many Lake Charles investors were bidding very low.
What should you ask for when submitting an contract to purchase? As little as possible because as little or possible, or nothing, is what you will get. You will most likely not get a home warranty and very little if no repairs. Remember, the bank is already losing money and they are not happy about losing more.
When I initially showed this property to my investor buyers, there were three other offers currently being revised and considered by the bank. ALL offers must be submitted to the Bank by the listing agent. All three offers received a counter to submit "highest and best" and after doing so the bank still rejected all three offers. It took several attempts for my buyer to get an accepted offer by the bank! Your timelines mean very little to the bank. Their timelines mean everything. You could sit and wait for a response from the bank forever, but once they respond then you are on the clock to perform.
The term “bank owned” most often refers to homes that have been repossessed during the foreclosure process and did not sell to another party at the foreclosure auction.
Money talks when buying a foreclosure. Unless you are an all cash buyer with few contingencies you are probably going to have to come very close to the asking price, and often go over asking. When you find a Lake Charles Foreclosure home for sale and it’s such a good deal that you decide to make a low ball offer to purchase your offer may not be accepted. 9 times out of 10 the buyer loses out on the house with a low offer. There is a reason that Lake Charles foreclosed homes are priced the way they are.
Banks are not looking to profit when they list a Lake Charles foreclosed property, The bank just wants to get the foreclosed property off their books, and more than likely the listed home price is going to be close to what is owed on the house plus the carrying costs the bank has incurred. If you are going to chase after Lake Charles foreclosures, then you have to learn to play by the bank’s rules!
Banks have a system in place when they list foreclosures for sale.
- The property will always convey in AS IS condition.
- Seller chooses attorney/title company
- Seller will make no repairs
Remember the bank wants the house off their books they are tired of accumulating expenses!
This particular Lake Charles foreclosure had a title issue which was an old IRS lien attached to a previous owner. The title company needed extra time to clear that in order to convey title to the new owners so we did not close on the original Act of Sale date and an extension was needed.
I not only spend time researching comparative Lake Charles real estate market values and conveying that information to my home buyer but I also point out the costs the buyer will incur and explain how foreclosures typically work and what the home buyer can expect. This helps the Buyer evaluate the costs and improvements that will be needed to update the property and a return on that investment.
As an experienced Lake Charles REALTOR and real estate negotiator, I am used to looking at comparative Lake Charles market data and recent Lake Charles homes sold in order to inform my buyer of current market value. Buyer’s trust and rely on me as their experienced agent of choice to guide them with my knowledge and advice when writing a purchase contract.
The buyers of 3705 Harvard, saw the potential in the home and were patient and diligent in going through the foreclosure process and all the paperwork. Congratulations to a happy buyer of 3705 Harvard, Lake Charles LA!