With lots of bank owned properties you are in multiple offer situations and your experience is common. I have a short video that will give some REO buyer tips. You probably will have to get a pre approval with the lender selling the home, however, they sometimes will accept the paperwork from another reputable lender. You did not mention that you had an agent, and I concur with Scott that you need a good one. Let me know if you need a referral to some.
See the Bank Owned buying video and other useful ones at...
I work for Ashlon Realty and currently we list well over 100 bank owned foreclosures here in the southbay and Bonita is basically my back yard. Whenever you put in an offer and in the listing it requests for you to get prequalled through their bank..I highly recommend you do it. Also, your agent must develop a relationship with the listing company buy directly talking to them and finding out as much as he or she can about the listing. He needs to ask questions like..
1. are there any offers on the property
2. if so where are they at
3. What price would my client need to be at to possibly get the home
4. What type of financing do you think the bank that owns the property would like to entertain
5. what type of financing do the other buyers have
6. are the other buyers going FHA or Conventional..if conventional how much are they putting down
So your agent really need to ask many types of questions and really needs to be work in the REO business to fully understand the how to structure an offer..then your agent has to sit down with you and develop the best offer that you can put to obtain the property you want. Good Luck! Vincent Villafranca REALTOR
619 972 8798.
A strategy can be to make offers on higher priced bank owned homes that may have been on the market longer and that are getting less offers and less competition, and offer below their asking price. Or also to make offers on short sales and the few private seller properties that are out there. Short sales obviously can take months if the bank has not agree to a short pay amount.
Another option is to go after a fixer-upper REO, they may have less competiton. I offer a special renovation loan for owner-occupants where the lender includes the cost to fix up the property in the loan. You don't have to make payments until you move in after the fix up.
It's interesting and not talked about in the media much about the multiple offer situations. People who are not in the market think that it's this increadible buyers market where you can make lowball offers and banks are begging people to take their properties, this is not true in San Diego. There is tremendous competion right now in San Diego for well price homes.
Sr. Loan Officer
The pain you describe with your offer process is going on all over San Diego County. What I have found is a disappointing experience if you are a good or even great buyer and getting a proper or dignified response after placing an offer on a short sale or bank owned property.
What I advise my own clients going through this very thing RIGHT NOW is that we make offers on everything and anything we like until someone wants to do business with us. Listing agents may not always divulge the full story to your agent as to what's happening with a property. Banks are losing so much money on these homes that they will and do take one offer over the with no warning.
You need a pre-approval letter, not a pre-qualification letter. Those pre-quals are worthless.
If the bank that owns the property you like wants you to get a preapproval from the, PLEASE agree that instantly if you really want the house. Each wasted hour is a chance you will get pushed around or put on the back burner.
Try to consider bank owned properties over short sales whenever possible. At that point, the asset is already owned by the bank and you are dealing with one person at the bank and one listing agent. The bank wants the asset sold now, so you have a better chance of being heard if you stick with already foreclosed homes.
Can I help you further?
I write a lot of contracts and understand language. Make sure your agent is protecting you from all kinds of tricks banks can pull AFTER acceptance.
Many thanks and good luck. Don't give up. 2008 is your year to buy.