| The process for buying foreclosed homes can be | | | | process of buying foreclosed homes can be a big plus. |
| painfully slow but, done correctly, will provide you with | | | | The agent should be able to find out the loss mitigation |
| instant equity in your new house. If you have ever | | | | officer that is assigned to the house and deal directly |
| worked in a large bureaucracy, you know how slow | | | | with him or her. Different banks have different |
| managers are to make decisions. Managers like to | | | | requirements for offers, so your agent needs to check |
| have lots of meetings, form a consensus and are | | | | with the loss mitigation department before you put in |
| rewarded for getting the most money out of a | | | | an offer. Many banks require a BPO (brokers price |
| foreclosed property. So don't expect a quick | | | | opinion) and will need to look at that before considering |
| counteroffer when you make an offer on a | | | | your offer. |
| foreclosure. | | | | Don't be afraid to be aggressive with your offer. |
| Before buying a foreclosure, the first thing you have to | | | | Some banks have policies that gradually lower the |
| do is find foreclosed homes. Some websites claim to | | | | house price if it does not sell in a certain number of |
| do this, but these are usually a little behind in the | | | | days. However, some banks are taking a more |
| relevancy of their information. The best way to find | | | | aggressive strategy and pricing foreclosed properties |
| foreclosures is to keep track of foreclosure auctions | | | | below market value, hoping to attract multiple offers |
| through your local newspaper and searching through | | | | and create a bidding war. Don't get involved in a |
| your County Records office. The next best way of | | | | bidding war - you often can overpay. |
| locating foreclosures is by finding a real estate agent | | | | Once you have made an offer, have your agent |
| that specializes in foreclosure properties. | | | | contact the bank to make sure they have received all |
| Before you make an offer on a foreclosed house, you | | | | necessary paperwork - these banks often lose faxes. |
| should have all of your financing in place. Understand | | | | Also , the agent should check with the loss mitigation |
| that to a bank a low cash offer is much better than a | | | | department at least weekly. |
| higher offer contingent on financing. More cash = | | | | The process for buying foreclosed homes can drag |
| better price. | | | | on for weeks and sometimes months. You may find a |
| Using a real estate agent that understands the | | | | bank that is inflexible - if so, move on. |