Home Buying in 84088>Question Details

Dianne Nomik…, Home Buyer in Laguna Woods, CA

How can I buy a foreclosure when I am a cash buyer or short sale is going to get me better price???????????? I don't know how to achieve a low

Asked by Dianne Nomikos, Laguna Woods, CA Sun Mar 14, 2010

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You can get a great deal with either a foreclosure or short sale. The key is to have a good agent running a comparative market analysis with you on any property you're purchasing to make sure you're getting the most for your money. Not all short sales or bank owned homes are "screaming deals" and often an uneducated buyer can end up paying the same for these properties that they would for a traditional sale... with extra headache in the transaction to boot! Banks will evaluate the overall strength of your offer, being a cash buyer will help but the way your offer is constructed can end up being more important than that. Finally, what constitutes a good deal will depend greatly on what your goal for this property is. Are you looking to find your dream home at a savings, find a cheap property that you can put back on the market for a profit or looking for a long term investment? A good agent can help you evaluate your goals, find the very best properties to meet those goals and make sure that you're not overpaying. I'd be happy to assist you further in reaching your goals. Please feel free to give me a call (801)419-2681 email me at reccles@utahsold.com or visit my website at http://www.EcclesRealEstate.com
0 votes Thank Flag Link Mon Mar 15, 2010
Hi Dianne,

From what I've seen cash is winning out in most cases. I just had a client buy a foreclosure they put almost 50% down. Their offer won out even though they weren't the highest bid, partly due to the amt. down plus their excellent credit for the balance. The seller (bank) required all offers to call their lender for a pre-qualification. I know my client's have excellent credit. The bank had told us they were not the highest bid. Frankly, I did not believe they would win out. They had lost out on others where the buyer had paid Cash. Right now what I've been hearing is if it's not Cash the banks want to know that the sale will go through, so strong buyers w/excellent credit, high down payments etc. From the offers are that are coming in they're looking for strong buyers etc.

I hope that this helps you. If you're looking to purchase in Utah check out my home search site below.
I can assist you through this process and make it a bit easier for you.

Thank You,

Becky Nay, GRI
Keller Williams Realty
801-573-2077 Cell
801-676-5815 Fax
beckynay@kw.com
http://beckynay.com
0 votes Thank Flag Link Sun Mar 14, 2010
You're probably better of getting the foreclosure at a Trustees sale than you are with a short sale.

Each have their challenges and risks. I don't know that I'd be paying all cash in a market where money is cheap though.

It's different to liquefy your cash when its tied up in counter tops and doorknobs.
0 votes Thank Flag Link Sun Mar 14, 2010
Do NOT buy on the court house steps. You are buying the banks interest in the house not the house itself. On here one realtor told how an investor client of theirs did that. Paid $50k for the house and found out their purchase was worthless. I hope they enjoyed the paper. It cost enough to make it worth framing.
0 votes Thank Flag Link Sun Mar 14, 2010
From what I have read the banks are not caring as much about you having cash as a normal seller would be. The bank is already losing money. They would rather take the financing most times and get a bigger payoff.

Normal sellers who want or need to sell would be more likely to entertain a lower cash offer so they know no financing problems will come up and the sale will go through. That means give a real low offer and be prepared to walk away if you do not get the house. cash is king but sometimes even kings have to look for the perfect place for their castle.
0 votes Thank Flag Link Sun Mar 14, 2010
If you have ALL CASH you may be able to go to the courthouse and make a deal with the lender's attorney. You will have to buy it "as is" with no time to inspect and there may be other liens on the title so there is a certain amount of risk.

Otherwise you can wait until the bank lists the property and hope that you're the highest bidder.

If you can wait for a short sale, you may get a good deal there but it may take 6 months or I've seen longer to close. You will not get a house for half off, however. The short sale loss mitigators will have an appraisal done to determine value.
0 votes Thank Flag Link Sun Mar 14, 2010
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