Additional Tips on How to Write REO Foreclosure Offers

Published by cravat | Filed under Buyer / Seller Tips, Cities, Miscellaneous, Real Estate, Shout Outs, Uncategorized

Who does not want to hit the jackpot when you are purchasing an REO property? Everyone does. I am giving you more ways to stand-out and make a winning offer versus the rest of them.

1) Did you Try to ask the Number of Offers Received for that REO Foreclosure?

If they have not received any offers on the REO property, then it is a cue that you most likely you can offer less than the list price and more change to get your offer accepted. Nonetheless, if there are a couple of offers, you probably need to gauge an offer which is above the asking price. If there are more than ten offers, keep in mind that one or a couple of those offers might be in cash basis. Banks prefers to deal with cash offers. If you are getting loans, then you may consider increasing the price on your offer to be even considered.

2) Provide a Preapproval Letter

By providing the bank a pre-approval letter from your lender in advance places a step forward. Also, get preapproved by the lender who owns the house. Do not simply expect to use this lender for your loan; rather provide them also of the pre-approval letter from this letter together with the correspondence from your own. Since Banks do not easily see other lenders approval to as an advantage but only trust their own, ofcourse. 

3) For Repair and Inspections, Never Ask the REO Bank

Other banks will pay for maintenance but usually will not say yes to do so during the offer stage. If problems are found during a house inspection. Try to re-negotiate after your offer has been accepted and finalized. 

4) Cut Short the duration of Inspection

If some owners ask for twenty days, for instance, to do the inspections and you tell for fifteen, you will be most likely considered a more serious buyer. 

5) When you can afford, split the fees with the Bank

This same deal goes with escrow fees other banks will not cover and pay for the transfer fees, for instance. If a potential buyer offer to shoulder the fees into half, the bank most probably will agree more in accepting the offer.

6) Think of the Repercussions in Appraisal

If your offer is over the listed price, remember that the appraisal will need to validate that cost. If you see yourself doing transaction with a low appraisal, you still have an alternative so do not easily give up.  Keep in mind that bank will most likely experience this problem with other buyers who acquires financing,