Home Buying in Coral Gables>Question Details

John, Home Buyer in Coral Gables, FL

how to buy a foreclosure property?

Asked by John, Coral Gables, FL Thu Mar 15, 2012

is there a special process etc?

Help the community by answering this question:


As everyone said the process on who submitts the offer differs between foreclosure companies and banks.

First step is to work with an agent that is familiar with foreclosures. If you've not been pre-approved for a loan do that as soon as possible or if you are paying cash (either for the full amount of the property or the downpayment) get a copy of your proof of funds. These two pieces are usually needed to be presented with any offer on a foreclosure property.

Good Luck
1 vote Thank Flag Link Fri Mar 16, 2012
Good Morning,

On homes that are bank owned properties, I have found that each bank has a different proceedure for submitting offers and how they get processed. In some cases the offers go to the listing agent who in turn submits them to the bank's asset manager for review, in other cases, offers are submitted to an online processing that goes directly to the asset manager. Depending on the level of interest/demand for a particular property, the bank will then request that all parties that have submitted an offer, then provide the buyer's highest and best offer, as they usually do not provide a counter offer. If your offer is the on the bank looks to proceed with, you would then recieve a package of addenums to the contract that the seller requires to be sign, and then you would submit your earnest money deposit. Documents get sent back to the bank for their signature and once you have a fully exectued contract and addendums, you then proceed to getting your property inspections done, and if you are financing your purcahse you get your full loan process started. Through all of this, of course you realtor will be there to guide you on the steps needed and the timing of them. Good luck in your home search.
0 votes Thank Flag Link Fri Mar 16, 2012
Depending on the foreclosure there are different processes. If it is now owned by say Bank of America you would probably either have your agent submit your offer to the listing agent or you could have the listing agent who is working for the bank submit your offer. Once the bank looks at your offer and they decide that your offer is the best one that they currently have they will accept it and you will move towards closing. Sometimes your agent will need to submit offers online depending on the foreclosure.
0 votes Thank Flag Link Thu Mar 15, 2012
Greetings. It seems like every purchase of a foreclosure is done with a different procedure, and the best way is to go into the MLS (Realtor database) and find out exactly what is required. The best case scenario is that you're a cash buyer who wants to live in a property. Competition for entry-level housing is particularly fierce, and be prepared to make more than one offer before succeeding. Send me an e-mail and I'd be happy to help you through it. Most banks will require you to go through their own pre-approval process, so unless you already have your eye on a specific foreclosure, it may make more sense to wait until you have picked one out.
0 votes Thank Flag Link Thu Mar 15, 2012
Since most foreclosures end up being listed with a broker consider working with an agent of your own. Keep in mind that not all foreclosures are such great bargains, therefore don't overlook some traditional sales, as some may end up being a much better buy. Be aware that a mortgage pre-approval letter is required in order to determine your price range and for any offers to be taken seriously.
0 votes Thank Flag Link Thu Mar 15, 2012
Don't forget that many banks have their own purchasing process. Some require an offer submission through the agent, others on a website, etc. When you find a property, find out which bank owns it and if they offer an special incentives if you use that bank's financing. Sometimes they do. Good luck.
0 votes Thank Flag Link Thu Mar 15, 2012
yes the first step is to get prequailified as you can not make an offer without a prequalification letter. Your next step should be to hire a buyer agent who is well experienced with bank owned homes who can assist you through the process.
0 votes Thank Flag Link Thu Mar 15, 2012
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