How To Buy A Bank Owned Property Fort Lauderdale
July 15, 2008
So you have been reading about how it’s a good time to buy a home in the Fort Lauderdale real estate market and how it’s an even better time to buy a bank owned property. So how do you do it?
Despite all of the allure of buying foreclosures, it’s not much different than buying a home in the conventional manner. Here are the steps to be taken to buy a bank owned, REO foreclosure in the Fort Lauderdale real estate market.
1. Get Your Funds In Place:You would not go to the grocery store without money in your pocket. Why, because you wouldn’t be buying, you’d be shopping. The banks holding these properties want to know they are dealing with real buyers. How does one present themselves as a “real” buyer? You need to have one of three things available to satisfy the bank that you have the wherewithal to buy the property.
a. A bank statement showing you have the cash available
b. A pre-approval from a reputable mortgage lender
c. A funds availability letter from a hard money lender or private investor stating that they have the funds available for you to
If you try and submit an offer without having your funds in order, chances are you’re not going to get to far. More than likely your offer will be rejected.
2. Make A Reasonable Offer That You Can Substantiate: Despite what the infomercials and gurus are saying, the banks are not in the habit of just giving away houses. While there is the possibility of substantial discount, you have to prove to the bank that there is a reason for them to let go of the property with such a reduction in price. ***Make sure you have an inspection period even if the property is being purchased in as is condition****
3. Earnest Deposit: It is highly advisable to actually tender a reasonable deposit. Buying foreclosures is a competitive niche of the real estate industry. There are some very savvy people buying in this market. Again, ignore the infomercial. You are going to need a check for $500.00 to $1,000.00 to place with the title company or broker representing you to be taken seriously.
4. Be Timely: Good deals go very fast. if you are interested, get with your agent and make the offer.
5. Cooperate And Be Thorough:No one wants to deal with someone who is going to be problematic and shows themselves to be a problem before the offer is already accepted. The bank will often request special forms and addendums and you need to be prepared to execute them. Obviously if you don’t agree with something you should not sign it, especially if your attorney advises you. However be prepared for there to be a lot of special paperwork. They are also going to want to see a copy of your check as well as your proof of funds letter.
6. Submit The Offer And Confirm Receipt: We like to email all of our offers. It makes for cleaner copies as some of these bank owned property offers are going to have approval by more than one person. After it has been submitted your agent should follow up on next steps and get a clear indication as to when you should hear something back.If the listing agent prefers email…. send the offer via email and always confirm receipt. A lot of times they prefer email, it makes it easier for them to forward or submit to the bank or asset management company.
7. Get Over The Fact That You May Not Have Much Control: Your reward is your discounted price. Remember that. Most, if not all banks are going to want their title company or attorney closing the deal and issuing title insurance. of course this is negotiable, as is everything, but be prepared for the bank not to yield this control. Most won’t budge. Some will but just understand what you are dealing with.
In the follow-up to this article, we’ll add more tips and strategies to getting your offer accepted on bank owned property in the Fort Lauderdale real estate market.
Here some other posts you may find interesting...
Fort Lauderdale Real Estate
Fort Lauderdale Homes And Condos For Sale
If you are interested in learning more about buying a home or condo in Fort Lauderdale or anywhere in South Florida; or if you need any information about the Fort Lauderdale real estate market, please feel free to contact me and it would be my pleasure to assist you.You can contact me at the number shown below or please feel free to contact me by the form below and I, or one of my assistants, will be sure to get right back to you within a few hours, if not sooner.
If you are inquiring about a specific property shown on this site, please include the address of the property in the comment section of the contact form below.
Bank Owned Properties In Fort Lauderdale
Foreclosures In Fort Lauderdale
Homes Fort Lauderdale
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Robin Sing-Cunningham
robins@robinashley.com
Access USA Realty
Local Fort Lauderdale | South Florida : 954-709-7461
My Assistants:
Barry Johnson: bjohnson@robinashley.com
