Buying a foreclosure is a "horse of a different color" and requires some expertise, knowledge and old fashioned negotiation skills! Maria is a Certified Negotiation Expert and shares her knowledge, tips and tools with the Buyer Specialist team. In addition, at a recent REO conference Maria and I learned some inside tips on how to buy an REO and what asset managers are looking for in an offer.
Top 3 Tips for buying a foreclosure:
1. Buying "As-Is" When you're buying a foreclosure, there is no sellers disclosure. Usually the asset manager responsible for the sale has never seen the property. Although in some situations, lenders may pay for some repairs or offer some concessions - it's best to plan on an "As-Is" contract and do your due diligence before making your offer. We have invested in technology & training that allow our Buyer Specialists to submit a repair estimate with your offer, using software that is recognized by lenders and appraisers. By doing this up-front, we increase the probability of your offer being accepted.
2. Be prepared for a 29 day close. Most lenders require a 30 day closing, but some national lenders have a 29 timeframe with no exceptions. We'll work with you to prepare for a smooth closing - on time!
3. Proof of Cash Funds. Lenders will require documentation of your funds as well as qualification information from your lender. We will want to thoroughly discuss what loan you plan to use. For instance, if it's a FHA or VA loan the property condition has to be at certain standards to qualify. We'll want to review options and problem solve before submitting the offer, reducing the risk of delays or unpleasant surprises.
For more information about how to buy a foreclosure, please contact us for a confidential Buyer Consultation. 267-238-1048 or SKunkel@CBPREF.com
Saturday, August 27, 2011
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