What It Takes To Win A Foreclosure…

City, State

Property Type

Min Price

Max Price

Beds

Baths

Categories: Short Sales & Foreclosures Posted on February 27th, 2009

You stayed up late… Saw an infomercial on how someone bought a foreclosure for $300 and they now live in a McMansion.
You read in the Washington Post that foreclosures are increasing so you know that banks must be willing to give homes away to people like you with good credit.
You find a house for sale in for 150k in an area that used to sell for twice as much.
You make an offer for 100k because this house needs some work AND you know then banks are hungry.
YOU DON’T GET THE HOUSE… because someone paid 215k for the house. Those morons.

You can continue to write contracts and cross your fingers… But, if you ever want to win a bidding process with the bank it is important that you understand a few changes that have taken place.

Every market is different. The Northern VA market is currently very hot. Bank owned properties are typically under contract within the first 5 days. Therefore, they are not desperate for your offer.
DO NOT base your offer price on the bank asking price. They are now often priced below the market for the purpose of multiple offers. If you only give asking price, you will most likely loose every time. (This may different depending upon how long the property has been listed and the price range).
The stronger your financing the better. Cash is best, Conventional financing is good, FHA financing is okay, asking for closing is ???? DEPENDING on your offer price. If you need closing help add it on to your asking price so the bank isn’t loosing anything.
Banks hate contingencies. If you have a home inspection, make it for informational purposes only (same for Radon tests, mold, etc..). This doesn’t mean that you can’t bail on the contract if you find things you aren’t willing to work with. It simply means you won’t be begging the bank for extra money.
The quicker your closing date the better… 30 days or less. The bank wants it off of their records. If you can’t settle within 45 days, you have a very slim chance of getting this home.

If you are looking for an agent who specializes in assisting in foreclosure purchases contact me!

This entry was posted on Friday, February 27th, 2009 at 9:50 AM and is filed under Short Sales & Foreclosures. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

203k loans for renovations said at March 5th, 2009 at 2:27 PM
[...] What It Takes To Win A Foreclosure… [...]
It Is Time To Push Your Uncle… For A Few Pennies said at March 6th, 2009 at 1:22 PM
[...] What It Takes To Win A Foreclosure… [...]
Foreclosure said at March 7th, 2009 at 3:29 PM
You made it simple and easy for readers to understand what they should do. I will strongly agree with you and suggest my friends to read this article for a nice clear guide.
3 Deal Killers… Beware!!! said at April 7th, 2009 at 2:57 PM
[...] What It Takes To Win A Foreclosure… [...]