Important Buyer Information in This Bank Owned, REO Foreclosure Market

Buying a home can be a significant investment andbuying process.
stressful for most, especially in today's REO, BankBuyers please keep in mind that Bank Owned Homes
Owned, Foreclosure and Short Sale market. This isare generally sold in "As Is" condition, which means the
definitely a SELLERS market with a BUYERS price. ItSeller is not going to do any repairs on the home prior
will take time and will require great real estateto you purchasing the home. The bank is also
knowledge."exempt" in regards to disclosing any prior or current
One of the most important aspects of buying a homeknowledge of the home (what may or may not be
is not only the act of buying the home, but actuallywrong with it). Be sure to always get a thorough home
getting properly pre-qualified to buy the home. As ainspection by a Professional Home Inspector.
buyer there are many types of loans you may qualifyMost of the time there are going to be multiple offers
for depending on credit and income. The best way toon the property. So how do you separate yourself
select a reputable lender is by referral or through yourfrom the other offers??? Terms. Here are some ideas
trusted Real Estate Agent. Be sure to ask the loanthat will help make you offer very appealing to the
broker for the different programs that are availableSeller.
-for example, FHA, Conventional, VA and Cash.1. Make your Earnest Money Deposit (half or the entire
Without the proper documentation, i.e., pre-qualificationamount) non-refundable after your inspection period is
letter, proof of funds and earnest money deposit, theover.
seller (this could be the bank, asset management2. You can always increase your deposit during the
company or individual) may not even look at the offermiddle of escrow.
or simply reject the offer. Proper up-front3. Shorten your inspection period.
documentation will not only ensure your offer is4. Make your loan not a contingency of the sale.
submitted but may get you put on top of the stack if5. Make the appraisal not a contingency of the sale.
the other potential buyers have not properly preparedMost importantly, you are going to need a very
or their buyers agents haven't educated them in theassertive Real Estate Agent like myself.