Since most of the REO foreclosed properties are under-priced, a number of confident home buyers want to invest in them. When REOs are priced by the banks under the comparable sales, one can expect multiple offers coming from here and there. So, for home buyers willing to buy REO foreclosures, it’s important to understand that the competition is tough. Here are some effective tips that could literally help you in writing successful offers to buy REO foreclosed homes.
An ideal move could be getting as much information about the property’s history as possible. This could be done by consulting your buyer’s agent as he has the ability to find out the purchase price of the bank on the Trustee’s Deed. The price should then be compared to the price asked by the bank. By examining the amount of loans that were previously secured to the property, one can determine the price the bank is likely to accept.
Now, you may also consider submitting a pre-approval letter. Why not get pre-approved by the lender owning the property? Of course, you won’t use the same lender for your loan but this strategy could help you in obtaining an additional pre-approval letter other than the letter obtained from your own lender. Remember, in certain cases, banks prefer making payments for the repairs once the offer is fully approved. Therefore, asking for repairs/inspections is a bad idea at the offer-making stage. Besides, by asking short periods for inspections, you can increase the chances of making your offer shine above all the rest.
