Absolutely! A foreclosure's bidding process is slightly different than an arms-length transactions' bidding procedure. It all depends on who the bank is. Most of the time you write your offer the same way you would any other offer. With foreclosed homes owned by HUD, Fannie Mae, Freddie Mac, Homesteps, et cetera, they have their own systems designed for submitting offers. When your offer is accepted, you have a certain amount of time to send in your purchase packet.
There is a misconception that foreclosures can be purchased for pennies on the dollar. While in some cases that is true, that is not typically the case these days. Today, incentives are being offered to owner-occupied buyers (I.E. - Freddic Mac "First Look" incentive), delaying the process for investors to purchase these homes as to allow owner-occupant buyers to bid on these homes first. Most of the time, the bank prices the home in "as-is" condition, and rarely reduces the price, unless the home has been on the market for a long time. Usually the bank has a certain number they need to net in order to close. For example, about one month ago, I wrote an owner-occupied offer on a HUD. The offer was approximately 80% of asking, and was rejected. But I received an email from HUD stating the exact number HUD needed to net in order for our offer to be accepted. Although HUD told me their bottom dollar, it was still an unacceptable figure for my buyer, and we continued to look at other homes.
There are an influx of buyers looking to snatch these homes up, when in all reality, this influx is creating bidding wars between rather than getting homes for 50-60% of asking! And if you are an investor in a multiple offer situation, competing against an owner-occupant offer, the chances of you winning are greatly reduced.
If you need assistance, or wish to speak more in person, please don't hesitate to call me at 309-948-3656, or send me an email at email@example.com. I appreciate the opportunity to help!
REALTORÂ® Licensed in Iowa
Keller Williams Realty Greater Quad Cities
1225 E River Drive, Suite 110
Davenport, IA 52803