This year thousands of homeowners will step into the abyss of having their homes foreclosed. The number of folks who think that buying foreclosures is easy, is staggering.
But that is simply not the case. There are so many things that can go wrong when trying to purchase a foreclosed property. Foreclosures simply aren’t easy to buy!
One of the things that makes’ it difficult, is the uncertainty of communication. There are multiple layers of red tape you have to go through just to get to a decision-maker.
Here are my five Keys to buying a foreclosed property:
1. Don’t assume–no matter what the list price is, do your own comparables. Talk with the neighbors, they might know something about the property that the bank doesn’t know, and wouldn’t tell you if they did.
2. If you want a smoking deal then search for properties that have been on the market for over 200 days then offer 20-30% less than what they are listed at. Just because it is a bank has it listed at a certain amount, doesn’t mean they know how to price properties to sell.
3. Treat your real estate agent as your best friend… even if they aren’t, because you will be talking with them often. Many times they don’t know what’s going on with the bank either… so you might as well be on the same page with them.
4. Don’t be intimidated by the banks seller addendum’s. They aren’t scary… just lopsided because they want all the terms to be in their favor.
5. When you feel like it is a big hassle and you want to quit, repeat three times; “I like helping to pay my landlords mortgage payments!
You have to be patient in dealing with banks, it could take between four to six weeks just to get a response from the banks about your offer. If you’re renting, it’s best to get a month-to-month extension because when it’s time for you to close, you’ll need to close quickly.