Hi Sam,
It's been a couple of weeks since your offer. Any luck ? did you get a response. I am having the same issues with my FHA clients. So your comments are greatly appreciated.
Lesley Harris, Realtor
(562) 673-0943 cell

If you're talking about the house on Appleton, I'd say chances are slim. But I would be interested to hear back if there was any response from the seller on your offer.

These are all great answers. Try to qualify with a direct lender (BofA, Wells, Chase, etc), not a loan broker. Many REO's will specify this in the confidential remarks that you can’t see. Try to qualify for a conventional loan, as FHA will typically make your offer less attractive. Try not asking for closing costs.

The bank will appreciate that you want to pay $38k over asking price (less closing costs), but if it doesn't appraise, then there is a problem. What did your realtor say he thought the home would appraise for? You should not make an offer until you and your agent have carefully looked at the comps. As Jeremy mentioned, the list price is sometimes not relevant with REO properties, because the banks set the price artificially low. You should already be discussing these items with your agent before the offer is made.

Many buyers are learning that they can't wait for the steal of the century. The few really great deals out there are being purchased by investors with all-cash offers. Buyers just have to accept where the market is at, and look for homes that are fairly priced. Good luck.

Hi Sam: It makes no difference how you structure the pkg. I have written more the 75 offers, conv with 20% down, earnest money at 10% check. Not one of my offers were selected, no contingencies, appraisal, loan, repairs, termite or any others. Bottom line the listing agents have control and the select what thy want to present. No more days of all offers must be presented. Go with the listing agents to buy a property.
Good Luck!!

Hi Sam Trigg,
The previous agent Barbara has a great answer. I too have been working with a FHA buyer and have gone up on price and still can not "win" a deal. I recommend to raise the deposit check And if you and your lender are confident and comfortable on getting the loan; then do not have a loan contingency with no appraisal contingency. If you have a good fico score perhaps send a copy of your Credit Report. Great Question and I am curious to see how and what other realtors will recommend. :)

I have been working with both VA and FHA Buyers trying to get REOs. It is not always the higher offer, it is what the bank nets that they look at. There is also a perception that FHA & VA guidelines are stricter than conventional and on some of the really beat up REOs there may be some issues. For example FHA does not do houses that have the large power lines behine them, but VA does not have a problem with that. My colleagues are right, the higher cash downs get the deals even if the price is lower. My VA buyer got offered two opportunities to purchase when the cash buyers who originally got the bid backed out. My FHA buyer got a house when we didn't have to ask for closing costs and was a regular sale and the agent had done business with me before and we were the first offer in. So you never know what will help you get the bid, but you do have to write the best offer with least costs as my colleague stated below. And most of all have Patience. There are some regular sales out there that cannot go FHA due to the flip 90 day rule as these have been bought out by the cash buyers, and are fixed up to flip. If you go conventional you will be able to buy one of those.

Good Luck. I hope all the information is helpful!
Regards,
Barbara Robbins-Olexa, Broker, e-Pro(R) Internet Certified, SRES(R)
L B Brokerage
DRE#797560
Servicing Long Beach & Neighboring Communities for 30+ years
714-296-7270
bstrealtor@aol.com http://www.barbararobbinsolexa.com

1 more thing: Even if you are picked, from a list price of $267K, $305K may not pass the FHA appraisal test. $305K may be too high of a price.

It's super tough being an FHA buyer & being 'The Chosen One" on an REO. There is so much competition for REO properties and Cash & Conventional will beat you most of the time. Notice I did say Most. There is a chance you could win it being an FHA buyer.

By the way, is it because of your credit score that you're still using an FHA loan & putting 10% down? Have you looked into going Conventional? Go Conventional if you can, you'll have better chances getting an REO property by doing so.

Otherwise, go after Short sales, there's less competition, even though prices will be the same or slightly better for you. Yes, I know, they can take a little while, but honestly, on average you can get approvals anywhere from 2wks-45 days. I've seen REO properties sold to all cash buyers, that can take up to 60 days to close because the banks are so backed up with paperwork.

I hope this information helps & good luck to you in your offerings!

emilyknell1@yahoo.com

I know you've made a bunch of offers over the past few months. There are too many details missing from your question for any of us to give you a good answer. Aside from price, what were the terms of your offer? Appraisal, termite, contingencies? What is the market value of the home? Asking price doesn't mean much right now. As you know by now, many times the price is purposely set low to create traffic, multiple offers and a buying frenzy on the property. The buyers are going to drive the price up to market value in your price range, if not over it. Next question, what does your agent think it will appraise for? Why are you going FHA if you are putting 10% down? FHA has stricter guidelines that REO agents don't like to deal with and the loan costs more to you. As Dyanna said, private broker is usually not as strong as a direct lender, unless they are going to prequal you with their own lender as well.

Bottom line on ALL offers today, it needs to be appealing to the seller. Your price AND terms need to be irresistable. Your agent should know the market value and projected selling price of any home they show you. If thats not happening, you need to have a talk with them and make sure they start doing it for you.

Oh Sam you still have not been able to find a home?? That is so unfortunate! I am not sure if your agent has been guiding you through this process, but going through a broker for your loan might not be the best bet. Most REO's want to see an approval letter from a "big" lender. Why don't you let us know what you would like to purchase, your price range and if someone has a property they think you might like they can help you. Good Luck Sam, I know you have been working really hard to find a home, don't be discouraged!!

Dyanna