Closing on A Foreclosure
When purchasing a foreclosure there are a few tips to help an offer get accepted with the bank.
-A sooner closing date on foreclosure offers helps a bit. Any closing over 45 days might raise a red flag. If you are okay with doing 30 days, then go forward with it. The sooner the closing, the better for the bank. If you offer a low sales price, then you can compensate with more earnest money, a faster closing date, a shorter due diligence period and fewer closing costs. A Realtor could help you with these areas.
-Writing an offer is a bit different on a foreclosure as banks they have different foreclosure considerations on an offer than a normal seller. Banks usually look for a cash offer (of course it usually equals a fast closing). They may even accept $15,000 less for a home for a quicker all cash offer. The banks want to get the house off their books as quickly as possible.
-If you want a well, septic and termite inspection, then an amendment that they would find satisfactory even though the home is being sold as-is.
-It’s also important to state in the contract that the seller to pay all the past homeowners dues and taxes.
Banks are seeing multiple offers nowadays, so you’re best and highest offer should be the first offer made. You want to be the most desirable offer on the table.
