Your REALTORÂ® is there to work for you as a Buyer's Broker and should represent you with integrity. If you want your REALTORÂ® to write an offer on a property of your choice, then you dictate the amount of earnest deposit you would like to put down and the price and the type of financing after speaking with a professional with a mortgage company near you and NOT one on line. The loan officer will pre qualify you and hopefully you and your RealtorÂ® will come to a meeting of the minds. If not, I highly recommend that you find yourself another REALTORÂ®.
If you need us to refer you to a RealtorÂ® in your area, please don't hesitate to call us toll free at 888 460-2911 or 928 649-9888
Good Luck and enjoy your new home which ever one it may be!
Sandra J Steele
You have to put some money up, but you can make the terms in your offer that the money only get's deposited if your offer is accepted. Your dough is not effected if the offer is not accepted.
I'm glad you had some basis for your offer - many potential homebuyers just make up numbers. Your realtor can help determine the value of the home to help you get a better idea of the local market. The bank would have had the expense of foreclosing plus back taxes and maintenance in addition to the amount owed on its mortgage, so they may very well be seeking more than what your research showed.
If this was a HUD REO and you're getting 100% financing then your offer would likely be rejected. If not, it doesn't hurt to bid and try, but don't expect the sellers to seriously entertain your offer without a deposit. It can always be used for the costs beyond the zero down payment such as settlement fees. If your offer is rejected then it'll be given back to you.
Here's where I offer advice that's often ignored: Get a good real estate attorney, especially if your intent is to purchase a foreclosed property. Have the attorney review the offer before you sign it as well as the purchase and sale agreement to make certain that you have the maximum protection for your efforts and investment.
Let me know if I can be of help with referrals or in financing your home. I know you have a pre-approval but feel free to check in to compare.
Good luck in your home search!
Eagle Nationwide Mortgage Thomas.Stevens@ENMCdirect.com
In MA, "consideration" or deposit money is essential to creating a legally binding contract. Even though the bank does not require a deposit for financing, a seller still would. Its a good faith to show you will not default on the agreement. Most banks in MA holding foreclosures require a $5k deposit. Bear that in mind for future properties that interest you, if this does not pan out. And as the poster below mentioned, there are many additional costs that the bank has other than the amount they purchased it for. A big fee they did not mention is paying to have any liens released. Many times, there are also outstanding taxes, water, sewer, and mechanical liens to be paid. Best of Luck!
Any purchase you need to place money into escrow which applies towards closing costs. Realtor is correct regarding $2K. Money is paid to title company upon executed contract not prior.
How do you know what bank purchased the home for. KEEP in mind bank still needs to pay for realtors fees, closing costs, 3rd party vendors, legal fees transfer title back to bank, eviction process and many other miscellanous fees.
Most lenders are not doing 100$ financing.
FHA requires 3% down.
In most areas the customary deposit is 3%. The check is not cashed until escrow opens, after your offer is accepted. After escrow opens you have a contingency period in which you can cancel and get your deposit back.
You should show this post to your Realtor...and the answers.
It is unlikely that you offer will be accepted and more than likely you will not even receive a counter offer from the bank. The majority of the banks have requirements in regards to offers. One of them is usually the fact that they will not accept less than 10% under the established market value.
As for putting money down, most foreclosure properties (as well as most non foreclosure properties) want a minumum of good faith monies (generally anywhere from $500 to $1000) with an initial offer. Your realtor should know if there is a minimum as a foreclosure property generally has guidelines for putting an offer in, which does include what they want as good faith monies.
I hope this answers your question, but as you have a realtor guiding you in this they should be answering this question as well.
Good luck in your offer