At the top of the list of "What will I need to buy a foreclosure?" in Macomb County? - Patience

By
Real Estate Agent with Keller Williams Realty - Lakeside Market Center

It has been well over a year since I've had buyer clients that didn't view at
least one foreclosureAn asset manager swamped by paperwork in Macomb County MI, for most it has been many
foreclosure properties before they decide on the home they wish to purchase.

You would think that by now after viewing hundreds of them and putting in more than 30 offers on these homes that I would have a handle on what the banks or asset managers are looking for when they receive an offer. Frankly, it gets more confusing as each month passes. There is no rhyme nor reason when dealing with the asset managers. Each foreclosure offer to
purchase brings a new set of rules, a new set of guidelines, and a new adventure.

I do however have a checklist of common items to be aware of when first viewing these homes:

Have $1000 readily available.
I have yet to see a bank owned / foreclosure home that doesn't require a minimum $1000 good faith deposit. It doesn't matter if you are using a FHA or VA mortgage and have down payment assistance. There is no getting around the minimum good faith deposit requirement before the asset manager will even consider your offer.

Plan on putting utilities in your name
for a short time after your offer is accepted. In order to have a thorough home inspection the utilities need to be on, and the banks / asset managers generally expect you to do that.

Multiple offers are the norm now. It is rare that a bank owned or foreclosure home will not have many offers coming in to them, oftentimes at over the asking price. Plan on competing with other buyers and structure your offer accordingly if you really want the home.

The best advice I could give? Have patience.

As of this writing, a buyer client and I are now on day 8 of a verbally accepted offer to purchase a
foreclosure home without signed seller documents returned.  The home inspection is on hold, the gas turn-on is on hold, as well as all processing.  Asset managers and the processers at the banks are
SWAMPED.  They have more on their desks than they can handle, and it takes time to get your
offer through the process.

If you have a deadline to purchase your new home and move a bank owned property probably will
not work for you. However, if you have a bit of time and the patience to wait for what could be weeks
for a response to your offer to purchase, and then another couple of weeks to actually get signed
documents back from the asset manager or bank then I'm sure you'll be happy with the outcome.


© Kris Wales - a Macomb County MI real estate agent


Search for homes in Macomb County with MLS provided data

 



close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Location:
Michigan Macomb County
Tags:
foreclosures
fha mortgages
macomb county real estate
bank owned homes

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainer
16,716
Donna Marie Godfrey
Godfrey Properties - Pottstown, PA

Great information.  How about the waiting time for acceptance of the offer?

May 13, 2008 11:27 PM #1
Rainer
340,913
Kris Wales
Keller Williams Realty - Lakeside Market Center - Macomb, MI
Real Estate Blog & Homes for Sale search site, Macomb County MI

Donna:  I've had a 24 hour turnaround, an 11 business day turnaround and everything in between.  As I said, there is no pattern to any of them.  Patience..patience..patience..

May 13, 2008 11:29 PM #2
Ambassador
838,906
Charlie Ragonesi
AllMountainRealty.com - Big Canoe, GA
Homes - Big Canoe, Jasper, North Georgia Pros

Nor only patience but a strong stomach and a good realtor who can investigate liens

May 14, 2008 12:14 AM #3
Rainmaker
808,819
Anthony Stokes-Pereira
Better Homes and Gardens Rand Realty - Nanuet, NY
Realtor

Hi Kris;

Great post and super information. investors in your area could use your tips.

May 14, 2008 12:16 AM #4
Rainer
45,581
Joe Virnig
RE/MAX Gold Coast REALTORS, Ventura County, California - Ventura, CA
No Ordinary Joe

It's great to set up the buyers with realistic expectation in advance.  Great post.

May 14, 2008 12:18 AM #5
Rainer
292,557
Diane Aurit
LKN Realty, LLC - Mooresville, NC
Lake Norman Real Estate

Kris, this is truly extremely helpful for those of us who haven't had a foreclosure sale.  Thanks for sharing your expertise with us!

May 14, 2008 12:34 AM #6
Rainmaker
2,791,230
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Kris, I'm sure these sales are stressful for everyone...patience would be essential in these types of sales.

May 14, 2008 03:01 AM #7
Rainmaker
720,587
Teri Eckholm
Boardman Realty - White Bear Lake, MN
REALTOR Serving Mpls/St Paul North & East Metro

Kris--Patience...Lots of Patience. You are so right on this. Representatives on foreclosures do tend to give answers a bit faster than those dealing with the short sales....at least in MN. Good info as usual!

May 14, 2008 04:53 AM #8
Rainer
463,641
Maureen Francis & Dmitry Koublitsky
Coldwell Banker Weir Manuel - Bloomfield Hills, MI
Coldwell Banker Weir Manuel

There is just no telling these days.  Dmitry wrote an offer on an REO last thursday and it was bottomlined the next day!  Not bad.  Some of our own reo listings are a bit more challenging...

May 14, 2008 09:05 AM #9
Ambassador
1,119,351
Russ Ravary ~ Metro Detroit Realtor call (248) 310-6239
Real Estate One - Commerce, MI
Michigan homes for sale ~ yesmyrealtor@gmail.com

Great advice for people who are thinking of buying a foreclosure.  Congratulations for at least getting the paperwork to them.

May 14, 2008 09:59 AM #10
Ambassador
2,758,601
TeamCHI - Complete Home Inspections, Inc.
Complete Home Inspections, Inc. - Brentwood, TN
Home Inspectons - Nashville, TN area - 615.661.029

Patience is a virtue. And, one certainly needs patience in this business. Good post Kris. I learn quite a bit from your posts.

May 14, 2008 11:00 AM #11
Rainmaker
786,877
Mike Jaquish
Realty Arts - Cary, NC
919-880-2769 Cary, NC, Real Estate

I just wish the loan folks could offer "foreclosure funding" packages to kids who think they will get a bargain buying someone else's heartaches.

Too many just have a hard time digesting that they need a higher credit rating than the folks who lost the house.

May 14, 2008 04:17 PM #12
Rainer
340,913
Kris Wales
Keller Williams Realty - Lakeside Market Center - Macomb, MI
Real Estate Blog & Homes for Sale search site, Macomb County MI

Charlie:   There is so much more involved isn't there?  What a learning curve for all of us.

Anthony:  Thank you.  I appreciate it.

Joe:  Buyers don't like surprises.  I'd rather give them all of the information upfront so that they can decide whether they have the patience for these situations or not.

Diane:  Glad I could be of help :-)

May 14, 2008 10:50 PM #13
Rainer
340,913
Kris Wales
Keller Williams Realty - Lakeside Market Center - Macomb, MI
Real Estate Blog & Homes for Sale search site, Macomb County MI

Carole:  They can be stressful and nail biting times indeed.  Thanks!

Teri: I haven't worked with a short sale yet, and truly hope I don't have to.  Too many horror stories around here about them and how they fall apart at the last minute in many cases.

Maureen:  I've had that same quick turnaround also with one, and with others it can be weeks.  That's why I said there is no rhyme nor reason to these.  There is no pattern yet that I can put my finger on...

Russ:  Yeah..the paperwork :-)   I should have added that to the post!

Michael:  Thank you.  I enjoy yours also for the same reason. 

Mike:  For the most part here in my area they are good bargains.   I understand though that in other parts of the country that may not hold true.

May 14, 2008 10:54 PM #14
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainer
340,913

Kris Wales

Real Estate Blog & Homes for Sale search site, Macomb County MI
Ask me a question
*
*
*
*
Spam prevention

Additional Information