I want to make an offer on a bank owned property. I plan on doing an FHA loan - is it ok to ask the seller

Asked by Jaemi Sisco, Maryland Thu Apr 24, 2008

to pay closing AND also make a % contribution to a down payment assistance program (like Nehemiah)?

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Richard Peeb…, Agent, Hunt Valley, MD
Sat May 24, 2008
Jaemi, in this "Baltimore Buyers Market" you can get a super deal on a nice home in good shape; you can buy it for much less than list price, the seller will pay your closing costs, the house will be in tip top shape and you can do a home inspection and have the seller fix anything and still use Nehemiah. So it may be cheaper but expensive in the long run to buy a bank owned house. I've never seen a bank owned foreclosure property in good shape and they sell them "as is". So in this market why would anyone by a REO, you may want to think twice about buying a foreclosure. Hope this helps.
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John MacArth…, Agent, Washington, DC
Tue Apr 29, 2008
You can ask. Bank owned property is the equivalent of the wild west today. Some banks are able to deal with the offers and others are totally overwhelmed. If you are placing an offer on Bank owned property, the first thing you should do is get pre-qualified by the bank that owns the property. They do want to sell the homes (they are non-performing assets), but they also love turning a loss into a good loan on their books.

I deal with these banks on a daily basis. Some understand Nehemiah and others do not have the time or understanding to process the information. Having someone in your corner that understands both sides of the transaction will be helpful.
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Bill Wootan's…, , Waldorf, MD
Fri Apr 25, 2008
Most Banks or Mortgage Companies only look at bottom line cash to them from the closing - if you are asking for all that, it is best to raise the price - most I have had accepted were cash or approved loans with no contingencies and no repairs - if the bank now owns the property (after a foreclosure, they have already invested from$20-65,000 in the property) and do not want to invest more - but with a good knowledgeable agent, they might get it worked out for you.

Bill Wootan - Leader Team One
Century21 H T Brown
Web Reference:  http://www.billwootan.com
0 votes
Lewis Poretz…, , Annapolis, MD
Thu Apr 24, 2008
Yes! - Contrary to what many believe, Banks DO NOT want to own homes. I know people who work in asset management positions at investors. These properties cost bucks every month. I am told that after it sits 30 days, the price lowers. After it sits 60 days, the price lowers...etc...... I have been instructed by asset managers for clients to submit every offer - whatever it may be. Hope this helps....
Web Reference:  http://www.openmortgage.com
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Robin Reed-H…, Agent, Orlando, FL
Thu Apr 24, 2008
Yes, you certainly can ask them to make a contribution. In my experience, most bank owned properties will allow it as they understand the state of our marketplace. Good luck!
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