Texasangel343,

Foreclosures are for losers and short sales are a waste of time too. Cedar Park has a plethora of neighborhoods that you can purchase move-in ready resale homes and offer 10% off the asking price. Why would you spend hours contemplating your foreclosure bid only to have someone else trump you with a crazy offer? If you win with the crazy bid, then congratulations as you get the honor of fixing the place up. Better yet, why would people place a bid on a short sale and then wait months for a response? I can't believe people are actually still doing this in the current market. Right now you have 2.5 months tops to find a home and take advantage of the $8k credit. Time is ticking fast, don't waste it on foreclosures.

You should contact Winnie Harrison, winniesold@earthlink.net, she owns those areas in Cedar Park and North Austin.

I am a mortgage banker here in Cedar Park. I have helped many clients with their mortgage needs who have purchased both HUD homes (FHA loan foreclosure) and REO (conventional loan foreclosures). I have seen where the seller has paid for some closing costs but it is usually limited at 3% of the sales price. The question of whether to offer lower than sales price would depend on how many other people are also making an offer when you are. If there are multiple offers, the bank will accept the one they think is the best for them. My advice would be to utilize a buyer's agent to help you get the information you need to make a fair offer. You will also need to supply a pre-approval letter or the seller will not even entertain your offer. If you do not have a local mortgage person you are working with I would love the opportunity to help you with that. Visit http://www.DiAnneWarlick.Benchmark.com to find out more about mortgages.
Good luck with your offer!

Banks don't like going rounds and rounds with buyers, so I would offer what you would like to pay, and ask them to pay the closing costs that you want them to, and leave it at that. Your offer sounds very fair, providing the home has a typical median price for Cedar Springs, so I wouldn't be scared to ask for it.

Good Luck!

Yes. Absolutely. With Foreclosures, the home is normally being purchased "as-is" with all faults so the buyer should account for that risk in his offer. As for closing costs, the purchaser can absolutely ask the seller to pay for some or all of his closing costs. When it comes to Foreclosure transactions, everything is negotiable.

Hello TA343,

Great question you have! Before you make an offer, I would at least consult with a market professional and see exactly where that foreclosure is positioned in the market.

Depending on what part of the market range the foreclosure is in will dictate what kind of offer to place. Also, there are a lot of rules when dealing with foreclosures, HUD homes, etc. If you are not a HUD expert, please consult with one before submitting the offer so your offer will stand out!

Also, please remember, you are placing an offer on a home here in the Austin, Central Texas area which is one of the leaders in the nation when it comes to real estate, employment, desired areas to live in, etc., which means if you find a deal somewhere here, you have to act extremely fast because it will disappear before you know it.

With all of this said, chances of a bank looking at low offers or considering paying a buyers closing cost are virtually nonexistent here. Check with you banker however on just one thing for me please. You may be able to apply the $8000.00 tax credit up front towards your closing cost and then pay it back when the credit comes to you after closing...again, please check with your banker for the exact details. If you can use the 8K then I would move quickly because I think the program is about to end soon! A great banker will know the exact details.

All the best!

Hi Texangler1343,

You can offer anything you like. Getting your offer accepted is another matter. Every deal is different and not all foreclosures are deals. You have a better chance of getting your offer accepted if you do not ask for closing costs. Banks seem to make their own rules and but don't necessarily follow them. Right now I am seeing better deals in the pre-foreclosure homes than in the bank or HUD owned properties. Good luck.

Texasangel343,
It varies by bank. But I see quite a few deals come in with up to 3% of the sales price rebated back in closing cost credit.
You can always offer and see what they say.... they might counter your offer or they might accept it!!!

If the property is owned by HUD.... be careful. They are famous for getting a lowball appraisal. They will let you offer more than the asking price and get closing cost help but then your down payment increases because you offered over appraised value. Always ask for the appraisal amount on HUD deals!!!!

You can put an offer in for less than the asking price, but don't expect the bank to pick up any closing costs. Most foreclosures don't even pay for some of the things that are usually the sellers costs. For example, they may not provide a survey or pay for any village repairs that may be required before closing. Usually the property is As-Is with no credits given for repairs and the buyer assumes alot of the costs that are normally paid by the seller. Every area is different, but this is usually the norm.