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Torang Nazmi's Blog

By Torang | Save $10,000's | Broker in 75063

How to Make a Cash Offer on a Home in Foreclosure

Research the Legal Owner


Track down the legal owner of the house. Go to the property and see if any information is tacked to the building that indicates what bank or lender owns it. Contact the lender directly if there’s a telephone number.


Check with your county's tax collector’s office for records on the property indicating who the owner is if no information is available on the house. Find contact information for the bank or lender by searching real estate websites that specialize in foreclosed, or real estate owned (REO), properties.


Contact the bank and speak to the asset manager handling the property. This person may refer you to a real estate agent handling the sale. Work with both parties to advance your offer.

Evaluate the Property


Research the value of the foreclosed house by asking a real estate agent to do a comparative marketing analysis. Stress that you don't want a fair market value but a price that's based on sold comparables for distressed sales and short sales in the area.


Gain access to the property through the lender. Bring a home inspector whom you have hired. Be prepared for electricity and water to be turned off and for appliances to be missing. Ask the lender if the utilities can be turned on temporarily for the inspection.


Consider the cost of bringing the house up to a livable standard and adding all appliances that are missing. Factor in the cost of all the repairs that the home inspector may have suggested, as well as the cost of debris removal for whatever the previous owners left behind.

Make Your Offer


Determine the price you want to pay based on the market analysis, length of time the house has been on the market, and the results of the home inspection.


Make a formal offer on the house using state-approved forms. Indicate that your offer is a cash deal with no mortgage contingencies.


Supply bank statements showing that you have the money available. Accompany the offer with a substantial deposit.


Write the contract with few or no contingencies if this is a property you are eager to own. Ask for a quick closing.


Wait for the lender to accept your offer and assign it to a title company. Work closely with the title company’s representative to fast-track any closing details.

source : http://homeguides.sfgate.com/make-cash-offer-home-foreclosure-39303.html

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