I never leave home without this...

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

I have had this as part of my buyers package for a couple of months now, and also have copies in my briefcase for those that I meet that are in the "curious about.." stages of purchasing.   Please feel free to print it out to give to your buyer clients.  (You may want to edit or alter it to fit your local purchasing practices).   All I ask is that you don't put it in your own websites so that there isn't duplicate content running rampant to penalize us.

 

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PURCHASING FORECLOSURES – TIPS AND GUIDELINES

 

Prior to making your offer:

 

Always consider an offer on a bank owned home to be your “best and last” offer as many of these homes are already bargain priced.  We are seeing many multiple offer situations on these homes. You may only get one chance to bid on them – make it your best offer from the start of the process.

 

Bank owners and/or asset managers require full proof of funds (if a cash offer) or a pre-approval for mortgage letter with any offers submitted.

 

They also may require a certified or cashiers check payable to the listing office prior to reviewing an offer to purchase.

 

Bank sellers will want to see a closing date of no more than 30 days from the date of first offer to purchase.
If you experience a delay in your mortgage approval or other reason for delaying the closing you will probably be charged a fee for each day that the closing is postponed.  The bank / asset manager may also withdraw the contract and put the home back on the market.

 

 

After your offer is submitted:

 


Offers on bank owned homes generally take 3-7 business days to receive a response back from the lender and/or asset manager. A signed acceptance of your offer may take an additional 3-7 business days.

 

Bank addendums & terms to the contract of sale must be agreed to by the purchaser and signed.  (There are a few exceptions to this, for the most part their terms are inflexible.)

 

 

Home inspections



If the utilities are not on in the home they will have to be turned on in your name if you desire to have a full inspection on the home.  (A full inspection is always recommended.)

 

Consider your offer to purchase with “As-Is” in mind. Banks/asset managers will normally not make any repairs to the homes.

 

Inspection contingencies are normally 5-7 days from the date of sellers acceptance. (Rarely do they allow more time.)  You must be ready to proceed with a home inspection quickly in order to meet the deadline.

 

 

Closing on your home:


Closing date, time and location are set by the title company hired by the bank owners.  We have very little flexibility, if any, in choosing a time that is preferable by the purchaser.

 

Many bank owned homes close in “escrow”.  We will arrive at closing, sign all necessary documents and if the bank signed documents have arrived to the title company and funds have been exchanged, then you will receive your keys to the home.




If the bank signed documents have not arrived in time for the closing, you will receive your keys to the home and your closing documents at a later date.  Most often this is within 1-3 business days of closing.

 

 


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Rainer
20,904
Sissy Thomas
Keller Williams Realty - Hendersonville, TN

Great information.  Thanks for sharing ... I will certainly use this with buyers who are seeking foreclosures.  Often they want to negotiate as if they were dealing with an individual rather than a portfolio manager in a corporation.

Jul 07, 2008 01:57 AM #1
Rainmaker
96,200
Yvette Smith
LONG & FOSTER - Williamsburg, VA
Realtor In Williamsburg VA, Homes for Sale

Hi Kris, This is cool!  Kudos to you for being prepared!!  Thanks for sharing this great idea!

Have a wonderful week!

Jul 07, 2008 02:03 AM #2
Rainer
135,795
Michael Shankman
Award Realty - Las Vegas, NV
Selling Las Vegas 702-498-3383

great post..thanks for sharing this with me. i have never put all of this into writing..thanks

Jul 07, 2008 02:03 AM #3
Rainer
32,459
Mike Miller
EXIT REALTY SERVICES - Moon Township, PA

Kris,  Thanks for sharing the tips and guidelines.  I'll keep it handy.  Mike

Jul 07, 2008 02:10 AM #4
Ambassador
296,975
David M. Childress
Howard Hanna Real Estate Services - Akron, OH
I would love to be your Realtor® in Akron Ohio!

As a lot of my sales are bank owned homes, I can attest to every statement that Kris has laid out above. Very good advice for those type buyers, especially, treat it as a the best and final offer! I have lost too many with the buyer wanting an even better deal. Poof, it's gone. Excellent, Kris!

Jul 07, 2008 02:12 AM #5
Rainer
340,913
Kris Wales
Keller Williams Realty - Lakeside Market Center - Macomb, MI
Real Estate Blog & Homes for Sale search site, Macomb County MI

Sissy:   That is exactly what I have been running in to (not understanding private seller vs investor transactions).  It's difficult for home buyers and sometimes having this in writing as a referance is helpful.

Yvette:  You have a wonderful week also :-)

Michael: Go ahead and copy/print it.  I think you'll find it helps!

Mike:  You're very welcome.

David:  Every buyers "best and final" is going to be different based upon their expertise with repairs, etc.  Going in with best and final in mind is always the wisest course.  Thanks David.

Jul 07, 2008 02:20 AM #6
Rainer
292,557
Diane Aurit
LKN Realty, LLC - Mooresville, NC
Lake Norman Real Estate

Kris, I haven't done any foreclosures so I truly appreciate you sharing this with us.  Now I have it just in case.  Thanks!

Jul 07, 2008 02:30 AM #7
Rainmaker
2,792,707
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Kris, This is good for both the buyers as well as the realtors.  I'm sure they may not be aware how this works and it's a different process.

Jul 07, 2008 10:18 AM #8
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

Kris, Great tips for the many buyers that are looking to buy Metro Detroit foreclosures.

Jul 08, 2008 01:08 PM #9
Rainer
340,913
Kris Wales
Keller Williams Realty - Lakeside Market Center - Macomb, MI
Real Estate Blog & Homes for Sale search site, Macomb County MI

Diane:  You're blessed, you don't have the heartache of viewing them and thinking about the families that once lived there. 

Carole:   I print it out for my buyers.  It's a great handy sheet for them to review prior to making their offer.

Russ:  I'm sure you could add more to it that I've forgotten about!

Jul 09, 2008 10:52 PM #10
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Rainer
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Kris Wales

Real Estate Blog & Homes for Sale search site, Macomb County MI
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