How To write an offer on a Bank Owned Property
Now you’ve taken the first step of working with a professional broker, but if you haven’t set up your free consultation yet, I wanted to share with you these 8 steps to make sure you offers are getting accepted on foreclosure properties. SO here we go..
1. Make sure you have gone through the entire pre approval process with a mortgage broker and have your credit run if you plan on doing any financing. If you are paying cash all you will need is a copy of a bank statement showing your proof of funds.
2. Submit complete packet – proof of funds less than 30 days old, copy of deposit check, pre-qual from the foreclosure banks designated lender if they ask for it! ( I am amazed at how many agents blow this off). If you are getting a loan, present a copy of the front page of your credit report proving credit scores within 60 days.
3. The biggest Earnest Money Deposit/Good Faith Deposit possible. As a buyer you can still cancel and get your money back but the banks give the deposit amount merit.
4. HIGHLIGHT “to close in 30 days or less”. You will often times be able to take it far longer, but the bank will see this as a sure sign the buyer is committed. IF all cash, ask “to close in 14 days or less”. Some banks have streamlined closing for cash buyers now.
5. If you want seller closing credits, include that up front, but know what your offer NETS the bank. They don’t care about credits if the NET is high enough.
6. Give the Seller choice of all services. It is one less thing to clarify in addendums or counters.
7. Have the complete packet already in our hands and be prepared to write on multiple homes. The objective is to get your offer accepted, you can decide if you will move forward on the specific house once you clear the hurdle of getting the banks acceptance.
8. Even though they are all “As-IS”, FHA repairs have been completed on almost all of our properties when requested. Don’t fight this in the offer price, wait for an FHA appraisal to call issues out, then request repair. The bank will have to deal with it or fore-go any FHA lending since the case number follows the property.
SO now that you have seen some of my tricks to getting your offer accepted on foreclosure properties, give me call to set up your appointment with me and I will share you my resources to finding these properties before they go on the market. Again it so important to be working with a broker who knows the ins and outs of buying foreclosures, and I only work with 10 serious buyers at a time. So give me a call and set up your free and no obligation consultation. I also have videos of how to buy a short sale I can send you. Thank you for your time and I look forward to meeting with you. Kurt Wannebo.
