12 facts about purchasing bank owned-foreclosure properties

Here are 12 facts you should know about purchasing bank owned-foreclosure properties.

1. Often the home will sell at or above the asking price.

They typically list the property under value to create a multiple bid situation (kind of like Ebay.) Once the bids come in the property goes to the highest or best offer.
2. Banks accept offers within 5-10% of the list price within the first 30 days - not an offer 30 to 50% below asking price.

What happens is the bank will typically respond 1 of 3 ways: (a) Accept your offer (b)Reject your offer or (c) Counter your offer. While this occurs the bank is still reviewing any new offers that are presented to them.
3. The bank will look at how the financing of the purchase is structured.

Is it a cash offer? 100% financing? VA , FHA or Conventional loan? Cash and conventional loans typically close quicker as they have the fewest financing contingencies attached to them.
4. Banks not only look at financing but the one that is the cleanest offer with the least amount of contingencies.

By that I mean, to make your offer strongest you may want to waive "inspections or remove any clause such as contingent on mortgage approval.
5. Banks look for offers with the largest earnest money deposit as it ensures you are a serious buyer.

6. Once banks respond back to you say as a counter offer, then they expect buyers to respond within 4 hours or you could lose the property.
If you would like the remaining 6 facts you should know in structuring an offer for a Bank Owned property call - 305-323-0963 or email Shelia @ Shelia@FergusonMovesRealty.com, today.

Category:

People & Blogs

Tags:

• Real
• Estate
• Realty
• Times
• Agent
• Market
• Condition