Upcoming Foreclosures

real estate bank owned foreclosure question?

When you see a bank owned foreclosure that is listed for 20 thousand dollars, will it be just a matter of contacting the bank and offering 20 thousand dallors or will the amount grow higher if more people are interested? I heard that the bank will counter offer you and it will be even higher so just wondering how it works?

Public Comments

1. they will take many offers on the home and sell it when they decide
2. You should make your offer through a realtor. If you put in a full price offer, you should be the one to get the property.
3. The bank relists the property for sale through a realtor. You make an offer on it just like any other home sale. Banks do not deal directly with buyers.
4. I’m not 100% how it works with bank owned, but I can tell you that buying a foreclosed or pre-foreclosed property isn’t as wonderful as it seems. Sure, the price is nice, but there’s much more too it. EVERYTHING has to be approved by the bank. So there’s always a process and honestly, it took us months to get ours done. We had buyers walk constantly because it was 6 months out and we weren’t a step closer. And that’s with phone calls galore. Usually it’s the price of the home plus all back taxes or liens. It can definitely be more and most likely will be more than the listed price. I also recommend going through a realtor. Just because they’re at least familiar with the process.
5. Normally if a property is listed as a bank foreclosure then a real estate agent has listed it. You should call the agent that listed the property and inquire of him/her. Sometimes that ad is a come on so don't be surprised if they tell you that the property they have listed is sold and would you be interested in another property. Any offer you make on the property would be through the listing real estate agent. Banks will on occasion counter an offer, but you should instruct your real estate agent that you want included in your contract the right of first refusal. I hope this has been of some use to you, good luck. "FIGHT ON"
6. foreclosures are sold through realtors. it is not a matter of simply calling the bank. the advertised price is often intentionally low balled. they will often get several offers that drive the price up. of course this is case by case with how this all works. just remember, if a home is selling for 20k, there's a reason for it. it's either in crappy condition, in a horrible area, or has enough liens on it to keep the property tied up for years. if it seems too good to be true, than it probably is. you're best bet is to get yourself a buyer's agent who is experienced with REO. don't fall for those "get a great home for a thousand bucks" ads that you hear on the radio.
7. When you buy a bank owned home it is just like buying any home, except you buy it from a bank. That is really the only difference. You still go through a realtor. The bank takes offers just like any home seller and they decide which offer they want to take, just like an individual that was selling their home would do. It is not just the price, it is also the terms of the lending. People who can pay cash or have a larger down payment are looked at favorably. It never hurts to offer what you can though. Keep in mind there are SOO many REO homes right now that banks need to get rid of, so they will sell them for a reasonable price and no home should ever be sold for more than what it is worth, otherwise you won't get bank financing or you are paying the difference out of pocket. Either way it is not a good idea to go over what the home is worth. The advantage of buying it after foreclosure is many times the lender cleans them up and you can actually see the inside. It's a buyer market right now so just keep trying until you get one.