Call or email with any questions.
As a foreclosure expert who represents the banks............the following is a successful gameplan for buying a foreclosure:
1) Understand that to determine the price the bank has the home appraised and prices it from the start $10K-$30K below the current prices of the surrounding homes
2) Keeping #1 in mind........buyers must understand that a FULL PRICE OFFER is a MUST!!...Re read # 1 then #2 should be clear!,,,By definition then...the home is already a great price since it is discounted already from the current DEPRESSED PRICES.
3) If you do not understand #1 and #2 there will be plenty of buyers that do.......this is why many buyers FAIL to buy foreclosure homes
4) Banks look for the most secure financing when entertaining multiple offers from buyers on the same house......what makes YOUR offer stand out is LARGER DOWN PAYMENT.......and CONVENTIONAL FINANCING.
5) Buyers must understand that if their loan has CONDITIONS in order to go through........FORECLOSURE HOMES will NOT MEET THOSE CONDITIONS.......your lender must approve the home AS-IS!!
6) Ask yourself as a buyer.........Why am I running around submitting LOWBALL OFFERS when there is NO CHANCE OF SUCCESS?????...... review #1 and #2 above........
7) If your agent is not a foreclosure EXPERT..........forget buying a foreclosure..........
8) Buyers must be pre-approved by a lender..........or the buyer's offer will be REJECTED OUTRIGHT.
9) Over 1/2 of ALL LISTINGS are in some stage of foreclosure...........if your agent does not know the difference of the many different kinds of financially distressed properties....YOU ARE WASTING YOUR TIME.
10) Knowing when a NEW FORECLOSURE hits the market......and knowing in REAL TIME....you will have NO CHANCE buying the property.......If your agent does not have you on LISTINGBOOK technology......GET A NEW AGENT!
11) There are GREAT LOANS available for buyers of REO/FORECLOSURE HOMES......Your agent should know this right away.......these loans can help you with needed repairs.
12) Many foreclosure homes need cosmetic repairs..........this is where the BUYER MAKES MONEY!!
Thia is a ONCE-IN-A-LIFETIME BUYERS MARKET..........however, navigating it takes an EXPERT.
Century 21 ** Orange County
Be very wary of agents who try and tell you that we're hit bottom and that now is absolutely definitely a great time to buy. You'll be better served by one that is honest and up front with you.
If you have any questions on this please let me know
First Team Real Estate
Unless you are attempting to purchase the foreclosure at auction, it's not likely that you would need all cash.
If you would like a chance to have your questions answered about foreclosures (short sales, bank owned,REO's), feel free to stop by my office here in Newport Beach Wednesday, July 9th at 7pm. I do a FREE foreclosure seminar for consumers every other week. I'd love to see you there.
When purchasing a foreclosed home that is listed on the MLS for sale, you can use cash but conventional financing as well. Different banks who are listing the homes can have different guidelines for offers, but typically I have seen conventional financing used for the purchase of these homes.
Alain Pinel Realtors
Good luck and if you have other questions, don't hesitate to ask.