HOW TO BUY FORECLOSURES
Buying a foreclosure is a little different than the typical purchase. Keep in mind the Bank has given an asset manager specific instructions on what can and cannot be done.
Banks do not “rent to own”
They do not accept an offer contingent upon the sale of another property.
Many banks, particularly Freddie Mac and Fannie Mae have an initial time period of about 15 days that the property is required to be marketed to owner occupants only. If the property is not sold in the “First Look” time period, Investors may submit offers.
The more complicated the offer the less chance you have of getting the home.Asset managers are looking for the highest price with the fewest contingencies. They reduce the price appox. Every 30 days and try to stay close to the asking price in the initial marketing time.
Keep in mind they always counter. The asset manager wants to show the Bank they have attempted to counter offer to get the most for the property.
Plan your offer strategy accordingly.
Often times there are multiple offers on the same property at the same time. Most asset management companies have a Multiple Offer Form used when this happens.
This procedure gives each buyer the opportunity to make their highest and best offer.The Asset manager will then either choose one of the offers or counter to one and reject the other offers.
Do your research carefully, use an experienced REO agent and you may get a great home at a considerable discount.