1.) Can I see the property before getting pre-approved?
Banks require you are preapproved before you can see the property.
2.) To make an offer on a Bank Owned Property, you must have the following ready:
•Pre-approval letter stating that the income, assets, and employment have been verified.
•Proof Of Funds
•Earnest money check of at least $1,000 or up to 3% of the purchase price (fully refundable prior to end of review period)
3.) What if my lender cannot close on time?
You may be charged late fees for any extensions. It is very important that you are preapproved.
4.) How did the Bank arrive at the asking price and is it a good deal?
The Bank will consult with their real estate agent and set the price at full market value.
5.) If there are multiple offers, how can our offer stand out?
If you have larger deposit, waive the financing contingency and show proof of funds the Bank to want to work with you, even if your offer is less.
6.) Choose the right Realtor
•experienced working with banks,
•has bought a foreclosures themselves.
7.) What if the property needs work?
The Bank WILL NOT make any repairs. They sell the property AS-IS. For this reason you have an inspection period to make sure the property is suitable. You should always have a home inspection after your offer is accepted.
8.) What if the property fails the home inspection?
You typically have 10 days to review the property, perform any inspections necessary and decide if you like the property. Your deposit is fully refundable within the review period.
9.) Can I use my own title company?
Normally the bank will require you to use their title company to do the closing. However, they will pay for the title insurance which saves you the cost of a owners title policy.
10.) How much will the bank take?
The bank is looking for an offer that is within 5% of the asking price. If the bank is asking $500,000, and you offer $300,000, it is almost certain that the bank will reject your offer. If the bank would accept $300,000, then they would set the asking price at $300,000. If they don’t get their price, then they will lower it every couple of weeks until they get close to list price.